nep-mfd New Economics Papers
on Microfinance
Issue of 2019‒04‒15
two papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Development of Bank Microcredit By JJ. Cao-Alvira; LG Deidda
  2. Evaluation de la performance des institutions de microfinancement (IMF) : étude de cas des IMF de la région MENA By Tlili, Afef

  1. By: JJ. Cao-Alvira; LG Deidda
    Abstract: We analyze the process by which banks enter the microcredit market while still engaging in traditional credit practices. For this we study a competitive credit market with adverse selection, where lenders are endowed with a screening technology capable of extracting an informative signal about a borrower's quality if enough time is devoted to process the loan application. The time necessary for signal extraction depends on the borrower's informational transparency. In the presence of opaque and transparent borrowers, depending on economy parameters, either a separating equilibrium with standard credit or microcredit prevails or a pooling equilibrium with either loan contract prevails.
    Keywords: Opaqueness;Microcredit;Bank Downscaling;asymmetric information;screening
    Date: 2019
  2. By: Tlili, Afef
    Abstract: This paper is about analyzing the performance of MFIs. In the microfinance sector, the definition of performance varies according to the purpose of the MFI : Is it to reach the maximum of the poor, or to achieve sustainability and financial performance ? The framework for analyzing the performance of MFIs has become a very broad field thanks to the remarkable growth experienced by the microfinance sector. In this work we chose the case of the MENA region. To be done we have to apply the DEA method. The study shows that the efficiency of the MFIs studied varies according to their legal status.
    Keywords: microfinance, performance, méthode DEA.
    JEL: G21 P27 P31
    Date: 2019–04–10

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