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on Microfinance |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | The purpose of this study is to complement extant literature by examining how mobile money innovations can moderate the unfavorable incidence of female unemployment on female doing of business in 44 countries from sub-Saharan Africa for the period 2004 to 2018. The empirical evidence is based on interactive quantile regressions. The employed doing business constraints are the procedures a woman has to go through to start a business and the time for women to set up a business, while the engaged mobile money innovations are: (i) registered mobile money agents (registered mobile money agents per 1000 km2 and registered mobile money agents per 100 000 adults) and (ii) active mobile money agents (active mobile money agents per 1000 km2 and active mobile money agents per 100 000 adults). The hypothesis that mobile money innovation moderates the unfavorable incidence of female unemployment on business constraints is overwhelmingly invalid. The invalidity of the tested hypothesis is clarified, and the policy implications are discussed. |
| Keywords: | Mobile phones; financial inclusion; women; doing business; sub-Saharan Africa |
| JEL: | G20 O40 I10 I20 I32 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:aak:wpaper:23/009&r=mfd |
| By: | Cramer, Kim Fe |
| Abstract: | This paper demonstrates that increasing bank presence in underserved areas can substantially improve households’ health. I apply a regression discontinuity design to a policy of the Reserve Bank of India. Six years after the policy introduction, treatment districts have 19% more branches than control districts. Households’ probability of suffering from a non-chronic disease in a given month is 36% lower. I show evidence that two understudied aspects of banking play a role: banks provide health insurance to households and credit to hospitals. In equilibrium, I observe an increase in health care demand and supply. |
| Keywords: | financial development; banks; health; insurance; credit |
| JEL: | G21 O16 I10 |
| Date: | 2023–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:119194&r=mfd |
| By: | Erica Bucchieri; Jacob Conway; Jack Glaser; Matthew Plosser |
| Abstract: | Congress passed the Community Reinvestment Act (CRA) in 1977 to encourage banks to meet the needs of borrowers in the areas in which they operate. In particular, the Act is focused on credit access to low- and moderate-income communities that had historically been subject to discriminatory practices like redlining. |
| Keywords: | debt; consumer; Community Reinvestment Act (CRA); Inequality |
| JEL: | G2 G21 |
| Date: | 2023–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:95725&r=mfd |
| By: | David P. Glancy |
| Abstract: | I study how bank relationships affected the timing and geographic distribution of Paycheck Protection Program (PPP) lending. Half of banks' PPP loans went to borrowers within 2 miles of a branch, mostly driven by relationship lending. Firms near less active lenders shifted to fintechs and other distant lenders, resulting in delays receiving credit but only slightly lower loan volumes. I estimate a structural model to fit the observed relationship between branch distance, bank PPP activity, and origination timing. I find that banks served relationship borrowers 5 to 9 days before other borrowers, an effect in line with reduced-form estimates using a sample of PPP borrowers with previous SBA lending relationships. |
| Keywords: | Banks, credit unions, and other financial institutions; COVID-19; Paycheck Protection Program (PPP); Relationship Lending |
| JEL: | G38 G21 G28 H25 |
| Date: | 2023–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2023-14&r=mfd |
| By: | Andrew F. Haughwout; Donghoon Lee; Daniel Mangrum; Joelle Scally; Wilbert Van der Klaauw |
| Abstract: | Total debt balances grew by $394 billion in the fourth quarter of 2022, the largest nominal quarterly increase in twenty years, according to the latest Quarterly Report on Household Debt and Credit from the New York Fed’s Center for Microeconomic Data. Mortgage balances, the largest form of household debt, drove the increase with a gain of $254 billion, while credit card balances saw a $61 billion increase—the largest observed in the history of our data, which goes back to 1999. |
| Keywords: | consumer credit panel; delinquency |
| JEL: | D14 |
| Date: | 2023–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:95661&r=mfd |
| By: | Leonardo Gambacorta (Bank for International Settlements (BIS); Centre for Economic Policy Research (CEPR)); Romina Gambacorta (Bank of Italy); Roxana Mihet (Swiss Finance Institute - HEC Lausanne) |
| Abstract: | This paper analyses the links between advances in financial technology, investors’ sophistication, and the composition and returns of their financial portfolios. We develop a simple portfolio choice model under asymmetric information and derive some theoretical predictions. Using detailed microdata from Banca d’Italia, we test these predictions for Italian households over the period 2004- 20. In general, heterogeneity in portfolio composition and in returns between sophisticated and unsophisticated investors grows with improvements in financial technology. This heterogeneity is reduced only if financial technology is accessible to everyone and if investors have a similar capacity to use it. |
| Keywords: | Inequality, Inclusion, FinTech, Innovation, Matthew Effect. |
| JEL: | G1 G5 G4 D83 L8 O3 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2327&r=mfd |