nep-mfd New Economics Papers
on Microfinance
Issue of 2017‒09‒10
three papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Determinants of Microfinance institutions' access to bank credit in Senegal By François-Seck Fall
  2. Microfinance - once and today By Schmidt, Reinhard H.
  3. Les compagnies chinoises de microcrédit By Thierry Pairault

  1. By: François-Seck Fall (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT1 - Université Toulouse 1 Capitole - UT2 - Université Toulouse 2 - Institut d'Études Politiques [IEP] - Toulouse - ENFA - École Nationale de Formation Agronomique - Toulouse-Auzeville)
    Abstract: The financial relationship between banks and microfinance institutions (MFIs) is a key element of the debate on establishing accessible financial systems in sub-Saharan countries. Today, MFIs face strong and growing pressure in terms of resources, especially due to an increasing demand for funding, both in number and volumes. However, there is virtually no academic literature on refinancing between banks and MFIs. Also, the existing empirical literature on microfinance access to external funding has to some extend neglected the importance of bank financing funds, focusing more on international external funds. The purpose of this paper is to analyze the access of MFIs to external funds from the local banking system. Specifically, we examine the link between an MFI's access to Banks funding and its maturity and performance. From a panel of 156 Senegalese MFIs, we have created a fixed-effects model to help explain the influence of key variables (MFI size, profitability, risk, etc.) on an MFI's ability to raise funds from the local banking system. The results show that bank financing generally benefit large MFIs, those with significant tangible assets and with a high quality portfolio. Profitability does not seem to be a key determinant of MFI's access to bank funding. However, the funds deposited by microfinance organizations in banks act as a financing guarantee and strongly help MFIs to raise funds from local commercial banks.
    Keywords: Banking,Microfinance,Refinancing,Financial Cooperation,Panel model,Senegal
    Date: 2017–06–11
  2. By: Schmidt, Reinhard H.
    Abstract: The German savings and cooperative banks of the 19th century were precursors of modern microfinance. They provided access to financial services for the majority of the German population, which was formerly excluded from bank funding. Furthermore, they did this at low costs for themselves and affordable prices for their clients. By creating networks of financially viable and stable financial institutions covering the entire country, they contributed significantly to building a sound and "inclusive" financial infrastructure in Germany. A look back at the history of German savings and cooperative banks and combining these experiences with the lessons learned from modern microfinance can guide current policy and be valuable for present and future models of microfinance business.
    Keywords: Microfinance,German savings banks,German cooperative banks,Inclusive Finance
    Date: 2017
  3. By: Thierry Pairault (CCJ - Chine, Corée, Japon - EHESS - École des hautes études en sciences sociales - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Trois catégories d'institutions légalement reconnues octroient de fait des microcrédits en Chine. Ce sont d'abord les organismes de lutte contre la pauvreté même si formellement ceux-ci ne sont pas habilités à le faire ni ne disposent de fonds suffisants pour le faire tant en permanence que sur une grande échelle. Ce sont ensuite les institutions financières régulières (grandes banques, coopératives de crédit…) qui sont en vérité assez peu enclines à en organiser la pratique et qui par suite limitent d'autant plus facilement l'allocation de microcrédits que les populations concernées ont peu de rapport avec elles. Ce sont enfin les compagnies de microcrédit, qui sont une forme de sociétés commerciales privées autorisées depuis 2008 à pratiquer le microcrédit dans un cadre ad hoc très précis. C'est à la description et à l'étude de ces compagnies de microcrédit (CMC) que se consacrera cette contribution.
    Keywords: China,microcredit,poverty alleviation,Chine,lutte contre la pauvreté
    Date: 2017–04

This nep-mfd issue is ©2017 by Aastha Pudasainee and Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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