|
on Microfinance |
| By: | Field, Erica (Duke University); Holland, Abraham (Harvard Institute for Quantitative Social Science, Harvard University); Pande, Rohini (Harvard University) |
| Abstract: | A majority of the world's impoverished lack adequate access to financial services. Typically, formal banks do not target the poor because lending without collateral is considered too risky. Poor households seeking credit are subsequently forced into informal markets where the prices are high, the quantities limited, and the methods of insuring repayment can be brutal. |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:16-036&r=mfd |
| By: | Xavier Giné (World Bank); Nídia García (Banco de la República de Colombia); José Gómez-González (Banco de la República de Colombia) |
| Abstract: | An audit study was conducted in Colombia following the protocols in Giné and Mazer (2017). Trained auditors visited multiple financial institutions, seeking credit and savings products. Consistent with Gabaix and Laibson (2006) and similar to Giné and Mazer (2017), the staff only provides information about the cost when asked, disclosing less than a third of the total cost voluntarily. In addition, clients are rarely offered the cheapest product, most likely because staff is incentivized to offer more expensive and thus more profitable products to the institution. Classification JEL: D14, G18, G21, O16 |
| Keywords: | financial information, audit study |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdr:borrec:984&r=mfd |