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on Microfinance |
| By: | Emran, M. Shahe; Shilpi, Forhad |
| Abstract: | The effectiveness of microfinance in improving the economic lives of the poor has been under extensive scrutiny in last two decades. Most of the studies on Bangladesh focus on the poverty and women’s empowerment impacts of microfinance. We provide a discussion on two relatively neglected aspects: the impacts on moneylenders, and the coping ability of households facing adverse shocks. The available evidence suggests that the microfinance in Bangladesh helped free many households from the “clutches” of moneylenders, contradicting the claim of some critics that microfinance exacerbates their dependence on moneylenders. The likelihood that a household takes loans from moneylenders declines by about 70 percent once it becomes a member of a microfinance program. However, the evidence also suggests that the moneylender interest rate goes up when the MFI coverage is high enough in a village, implying that the remaining clients of moneylenders suffer a negative pecuniary externality. The evidence on coping ability suggests that microfinance membership improves food security during flood and Monga. But microfinance membership does not reduce the propensity to sell labor in advance in the lean season and may not help a household undertake short-term migration to urban labor market in response to a shock. |
| Keywords: | Microfinance, Microcredit, Moneylenders, Interest rate, Cream Skimming, Economic Shocks, Flexible Loan Contract, Seasonal Hunger, Monga, Missing Markets Microfinance, Microcredit, Moneylenders, Interest rate, Cream Skimming, Economic Shocks, Flexible Loan Contract, Seasonal Hunger, Monga, Missing Markets Microfinance, Microcredit, Moneylenders, Interest rate, Cream Skimming, Economic Shocks, Flexible Loan Contract, Seasonal Hunger, Monga, Missing Markets |
| JEL: | D4 G23 L3 O12 O16 |
| Date: | 2021–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111159&r= |
| By: | Chen, Jingjing (University of Warwick) |
| Abstract: | Empowerment for girls and women, Goal 5 for the Sustainable Development Goals, is the key for economic development. As mobile phones become cheaper and more prevalent, a growing number of researchers are investigating their impact on women's empowerment. Most previous research has relied on interviews and cross-sectional data, so their conclusion limited to the association rather than establishing the causal relationship between mobile phones and female empowerment. This paper used Indian Human Development Survey 2005 and 2011-2012 to study the association between mobile phone ownership and women's empowerment in rural India. Then difference in- difference strategy was applied to identify the causal impact of village mobile phone service installation on female empowerment. Like previous studies, the results from this paper suggest that mobile phone ownership was associated with higher women's empowerment. Moreover, mobile phone service installation increased women's involvement in decision-making process but it decreased female labour force participation and contraceptive usage in rural India. |
| Keywords: | gender equality ; empower women ; mobile phones ; decision making power ; freedom of movement JEL Classification: J12 ; J13 ; J16 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:wrkesp:09&r= |
| By: | Defina, Ryan; Van Roosebeke, Bert; Manga, Paul |
| Abstract: | E-money is widespread in Kenya, especially through MPESA, a form of e-money stored on mobile phones and issued by Safaricom, a mobile network operator (MNO). Integration between the MPESA platform and the traditional banking system is increasing. Given the very high use-grade of MPESA throughout the population, it has reached critical importance in Kenya. In Kenya, e-money issuers must back their e-value with bank balances at commercial banks (float), through trust accounts. Deposit insurance does not cover a default of the e-money issuer. However, the Kenya Deposit Insurance Corporation aims at offering pass-through coverage in case of a default of the deposit-taking commercial bank holding the trust accounts. Pass-through coverage is confronted with a number of challenges, including regarding data on the identity of e-money users and their balances held. Also, the critical importance of MPESA raises questions as to how to deal with a potential default of the MNO and the role of deposit insurance in such a scenario. Looking forward, there is merit in further coordination amongst safety net participants as well as in the management of trust accounts and the strengthening of data-availability requirements to e-money issuers. |
| Keywords: | deposit insurance; bank resolution |
| JEL: | G21 G33 |
| Date: | 2021–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111007&r= |