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on Microfinance |
| By: | Sara Biancini; David Ettinger; Baptiste Venet |
| Abstract: | We suggest an explanation for the existence of “mission drift”, the tendency for Microfinance Institutions (MFIs) to lend money to wealthier borrowers rather than to the very poor. We focus on the relationship between MFIs and external funding institutions. We assume that both the MFIs and the funding institutions are pro-poor and agree on the optimal proportion of funds to be granted to the poorer borrower. However, asymmetric information on the effort chosen by the MFI to identify higher quality projects may increase the share of loans attributed to wealthier borrowers. This occurs because funding institutions have to build incentives for MFIs, creating a trade off between the quality of the funded projects and the attribution of loans to poorer borrowers. |
| Keywords: | microfinance, mission drift, moral hazard |
| JEL: | O12 O16 G21 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8893&r=all |
| By: | Bernhardt, Dan (University of Illinois and University of Warwick); Koufopoulos, Kostas (University of York); Trigilia, Giulio (University of Rochester) |
| Abstract: | We provide theoretical foundations for positive lender profits in competitive credit markets with asymmetric information, where potential borrowers have scarce collateralizable assets. Strikingly, when some borrowers have negative net present value projects, an equilibrium always exists in which lenders make positive profits, despite their lack of `soft' information and free entry of competitors. We then establish that greater access to collateral for borrowers reduces lender profits, and we relate our findings to the empirical evidence on micro-credit, payday lending, and, more broadly, retail and small business financing. JEL Classification: D82 ; D86 |
| Keywords: | Adverse selection ; positive profits ; collateral ; free entry ; market breakdown ; credit markets |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1328&r=all |
| By: | Célestin Mayoukou (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université) |
| Abstract: | Microfinance industry is changing progressively during this last thirty years. The depth of is intermediation is growing. Serving at the beginning of the informal customers ; he serves since several years yet, small and medium enterprise (SME). Multinational banks and international funds had also entering the microfinance industry by granting loans to microfinance institutions. The digital innovation had disrupted the sector who become adult. |
| Abstract: | L'industrie de la microfinance connait depuis 30 ans une mutation perpétuelle. L'échelle de son intermédiation s'est progressivement élargie. Centrée à ses débuts sur des acteurs du secteur informel ; cette activité touche désormais une large clientèle englobant même des PME exportatrices. Son mode de refinancement s'étend désormais au marché international des capitaux, puisque des Fonds d'investissement et des Banques multinationales alimentent les IMF en capitaux. La digitalisation et les plateformes de crédits en ligne ont aussi fait leur entrée dans la microfinance. Cette industrie n'est plus désormais une industrie dans l'enfance |
| Keywords: | Microfinance,intermediation,microfinance industry,intermadiation,industrie microfinancière |
| Date: | 2019–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02489308&r=all |
| By: | Célestin Mayoukou (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université) |
| Abstract: | La microfinance dans la sous-région Afrique centrale est aujourd'hui une industrie en voie de développement. Mais elle connaît une situation contrastée selon les pays.Dans la zone CEMAC cette industrie a connu une restructuration dans les années 2000 qui a abouti à la réglementation actuelle. L'industrie est structurée en trois types d'institutions qualifiéesde première, deuxième et troisième catégorie. |
| Date: | 2019–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02343376&r=all |
| By: | Mahendra, Rizki; Tanjung, Mariani St.B |
| Abstract: | This study aims to evaluate the provision of microcredit creations at PT. Pegadaian (Persero) Siteba Service Unit. The subjects of this study were the employees and managers of PT. Pegadaian (Persero) Siteba Service Unit. The data collected by interview and documentation methods are then analyzed by descriptive analysis. The results showed that the provision of microcredit creations set by PT. Pegadaian (Persero) Siteba Service Unit has been carried out well, starting from submitting credit requests, investigating guarantee documents, conducting surveys, studying credit documents, to credit disbursement. |
| Date: | 2021–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:4gcav&r=all |