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on Microfinance |
| By: | Arnaud Dornel; Meriem Ait Ali Slimane; Komal Mohindra |
| Keywords: | Finance and Financial Sector Development - Access to Finance Finance and Financial Sector Development - Microfinance International Economics and Trade - Trade Finance and Investment Private Sector Development - Small and Medium Size Enterprises |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:34898&r= |
| By: | Atiyas,İzak; Dutz,Mark Andrew |
| Abstract: | This paper explores differences and similarities across formal and informal microenterprises inSenegal. It uses a new national sample of more than 500 firms, of which two-thirds are informal and over 95 percentare micro-size, employing five or fewer full-time employees. The analysis finds that formal firms have averageperformance outcomes that are in the range of three to five times higher than informal firms. Formal firms are also morelikely than informal firms on average to possess “good” characteristics, namely assets and uses of digitaltechnologies that are positively correlated with productivity, sales, exporting, and employment. Despitethese average differences, informal firms are highly heterogeneous, with a sizable number similar to formal firmsin terms of both performance outcomes and good characteristics: the share of informal firms in the topproductivity and sales deciles having good characteristics is substantial, and one-third of all firms in thehigh-performance cluster based on a data-driven combination of the four performance variables are informal firms.Importantly, several characteristics that are correlates of better performance (being in the top two clusters) forinformal firms are identical to those for all firms in the high-performance cluster: having electricity, having had aloan, and in terms of uses of digital technologies, having a smartphone and using a mobile phone to communicate withsuppliers and customers. However, a sizable number of high-performance informal firms are lagging in terms of good characteristics. That roughly half of formal firms and noinformal firm had a loan implies that it is possible to be in the top performance cluster even without having access tosuch formal financing. That over half of formal firms in the top cluster as well as in the top decile of productivity andsales use inventory control/point of sales software as a management tool while only one informal firm does is bothindicative of the small number of informal firms that use these technologies and suggestive of the potential forperformance improvements if such technologies were used more widely. |
| Date: | 2022–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10111&r= |
| By: | Valeriya Goffe; James Hammersley; Elie Rustom |
| Keywords: | Public Sector Development - Public Sector Economics Finance and Financial Sector Development - Debt Markets Finance and Financial Sector Development - Financial Intermediation Finance and Financial Sector Development - Insurance & Risk Mitigation Finance and Financial Sector Development - Microfinance Private Sector Development - Small and Medium Size Enterprises |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:35170&r= |
| By: | Karmali,Nadeem M.; Guillermo J. Rodriguez Ruiz |
| Abstract: | Anecdotal studies have highlighted the recent rapid growth of so-called affordable housingfinance companies across India. These new lenders are reported to be using a high-touch approach common tomicrofinance to provide mortgages to households that are newer to credit, have irregular incomes, and live in smallerurban centers. As there is no specific license type for these lenders, this paper uses detailed credit bureau datato identify which lenders could be tagged as affordable housing finance companies. Using several classificationtechniques, the paper then assesses their growth and performance. The results vindicate the anecdotal studies andshow that this nascent sector grew at an average annual compound growth rate of 27–32 percent between 2016 and 2020.Affordable housing finance companies have been able to lend to more marginalized borrowers who are newer to credit anddo so in a markedly different way than other lenders. Delinquencies at affordable housing finance companies arehigher only for smaller loans, while risk-adjusted lending spreads are higher for all affordable housing financecompany loan sizes. This suggests that, thus far, the approach is profitable and sustainable. Looking forward,this lending model could be useful for other countries to explore given the incipient success in India, although thereare crucial capital market and institutional features that are unique to India. The paper also discusses demand-sidesubsidies for mortgages in India and identifies opportunities to improve the targeting of the program. |
| Date: | 2022–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10038&r= |
| By: | Sebastian Infante; Phillip J. Monin; Lubomir Petrasek; Mary Tian |
| Abstract: | In this note, we examine how changes in the yield curve slope affect the provision of credit and intermediation services by non-bank financial institutions (NBFIs), including broker-dealers and hedge funds. Although these NBFIs typically do not lend directly to the non-financial sector, they indirectly support the flow of credit by investing in debt securities and extending financing to investors who own such securities. |
| Date: | 2022–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2022-10-11&r= |