| By: |
Hering, Imke;
Mußhoff, Oliver |
| Abstract: |
Based on a rich dataset of an Azerbaijani microfinance institution, we analyze
what a lender can pre-determine from own collected repayment records on
clients and how lending conditions are adjusted for the knowledge gains. At
the same time, the repayment performances and lending policies between
agricultural and non-agricultural clients are differentiated. Our results
confirm a positive relationship between previous delays and recidivism, which
is even enhanced by the severity of the previous overdue payment. With respect
to consequences of previous delay, we find that the borrower faces an increase
in loan volume rationing in the subsequent loan. All in all, we state that
banks’ internal repayment records can contribute to the customer risk
assessment. |
| Keywords: |
Microfinance, Risk management, Credit reports, Azerbaijan, Agricultural Finance, Community/Rural/Urban Development, International Development, |
| Date: |
2016 |
| URL: |
http://d.repec.org/n?u=RePEc:ags:gewi16:244780&r=mfd |