nep-mfd New Economics Papers
on Microfinance
Issue of 2026–02–23
three papers chosen by
Guadalupe Acra Ticona


  1. Microcredit contracts with double social sanction: a Markovian approach to incentivizing viability By Philibert Andriamanantena; Abdou Issouf,; Mamy Raoul Ravelomanana; Rakotozafy Rivo,
  2. The Role of Financial Inclusion in Reducing Youth Unemployment and Mortality in the MENA Region: An Application of FMOLS Approach with Panel Data By Jabrane Amaghouss; Hanane Elmasmari
  3. Financial Technology and Financial Stability: Evidence from Emerging Market Economies By Umair, Syed Muhammad; Ali, Amjad; Audi, Marc

  1. By: Philibert Andriamanantena (Lycée Jean RALAIMONGO, Ankofafa Andrefana, 301 Fianarantsoa,); Abdou Issouf, (Université des Comores, BP 2585, Moroni, rue de la Corniche Comores); Mamy Raoul Ravelomanana (Université d’Antananarivo, Faculté de Droit, d’Economie, de Gestion et de Sociologie Ankatso, 101 Madagascar); Rakotozafy Rivo, (Université de Fianarantsoa)
    Abstract: In this article, we apply the double social sanction for generalized credit granting models in microfinance. These generalized models are the basis of a Markov chain and allow the consideration of a certain number of states of nature whether in the case of an individual loan contract or a group loan contract. which are among others: the initial state $A^1$, the states $B_1$, $B_2$, $B_3$, $I$, $I_1$ and $I_2$ of being a beneficiary including financial inclusion and the excluded states $A^T$ \ldots $A^2$ representing the ($T- 1$) states of financial exclusion. In relation to these states, the application of social sanctions allows the institution to implicitly discriminate between borrowers and to find a compromised balance from the choice point of view and from the repayment point of view. For a social sanction considered too strong, the least risky borrowers will prefer the individual loan contract. Thus, they do not have to suffer any possible social sanction and do not have to possibly pay the transfer charge of the joint responsibility. On the other hand, with low social sanctions, borrowers will lean towards the group loan contract.
    Abstract: Dans cet article, nous appliquons la double sanction sociale pour les modèles généralisés d'octroi de crédit en microfinance. Ces modèles généralisés sont à la base d'une chaîne de Markov et permettent la considération d'un certain nombre d'états de la nature que ce soit dans le cas d'un contrat de prêt individuel ou d'un contrat de prêt de groupe qui sont entre autre : l'état initial A 1 , les états B 1 , B 2 , B 3 , I, I 1 et I 2 d'être bénéficiaire incluant l'inclusion financière et les états d'exclus A T. .. A 2 représentant les (T − 1) états d'exclusion financière. Par rapport à ces états, l'application de sanction sociale permet à l'institution de discriminer implicitement les emprunteurs et de trouver un équilibre compromis du point de vue choix et du point de vue remboursement. Pour une sanction sociale jugée trop forte, les emprunteurs les moins risqués préféreront le contrat de prêt individuel. Ainsi, ils ne sont pas à subir une éventuelle sanction sociale et n'ont pas à payer éventuellement la charge de transfert de la responsabilité jointe. Par contre, à sanction sociale faible, les emprunteurs se pencheront vers le contrat de prêt groupé ABSTRACT. In this article, we apply the double social sanction for generalized credit granting models in microfinance. These generalized models are the basis of a Markov chain and allow the consideration of a certain number of states of nature whether in the case of an individual loan contract or a group loan contract. which are among others: the initial state A 1 , the states B 1 , B 2 , B 3 , I, I 1 and I 2 of being a beneficiary including financial inclusion and the excluded states A T. .. A 2 representing the (T − 1) states of financial exclusion. In relation to these states, the application of social sanctions allows the institution to implicitly discriminate between borrowers and to find a compromised balance from the choice point of view and from the repayment point of view. For a social sanction considered too strong, the least risky borrowers will prefer the individual loan contract. Thus, they do not have to suffer any possible social sanction and do not have to possibly pay the transfer charge of the joint responsibility. On the other hand, with low social sanctions, borrowers will lean towards the group loan contract
    Keywords: microfinance, Group loan, individual loan, social capital, double social sanction, double sanction sociale, capital social, capital social Group loan, prêt individuel, Prêt de groupe
    Date: 2025–10–14
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-04214309
  2. By: Jabrane Amaghouss (Cadi Ayyad University); Hanane Elmasmari (Cadi Ayyad University)
    Abstract: This study investigates the effects of financial inclusion on youth unemployment and mortality rates, using panel data from 17 countries in the MENA region over the period 2004-2022. Controlling for variables such as the ICT development index, economic growth, and inflation rates, the results reveal a causal relationship between financial inclusion and both youth unemployment and mortality rates. Moreover, the Fully Modified Ordinary Least Squares (FMOLS) model results support the hypothesis that an inclusive financial system contributes to reducing both youth unemployment and mortality rates in the long term. Additionally, the GMM estimates further corroborate the role of financial inclusion in achieving SDGs 3 and 8. In contrast, the control variables show that an increase in the ICT development index raises unemployment but reduces the likelihood of youth mortality. Meanwhile, economic growth and inflation rate have a relatively weak impact on both youth unemployment and mortality risk in the MENA region.
    Date: 2025–12–14
    URL: https://d.repec.org/n?u=RePEc:erg:wpaper:1813
  3. By: Umair, Syed Muhammad; Ali, Amjad; Audi, Marc
    Abstract: This study explores the influence of financial technology adoption on financial stability across 35 emerging market economies over the period 2015–2024. A fintech adoption index is constructed using data from the GSMA mobile money metrics, World Bank database, and Bank for International Settlements Fintech Statistics, including indicators such as mobile payment transactions, transaction volumes, and the number of fintech startups. Principal component analysis is employed to reduce dimensionality and enhance the validity and comparability of the index across countries and time. To assess the relationship between fintech adoption and financial stability, this study applies the cross-sectionally augmented autoregressive distributed lag model, which is particularly suitable for panel datasets with mixed integration orders and cross-sectional dependence features commonly observed in macroeconomic analyses of emerging economies. Regulatory quality, measured using the World Bank’s Worldwide Governance Indicators, is examined as a moderating factor. The results reveal that higher levels of fintech adoption improve financial stability, especially in environments with stronger regulatory frameworks. Robustness is confirmed through several diagnostic checks, including the CIPS unit root test, alternative model specifications, and interaction term analysis.
    Keywords: Fintech Adoption, Financial Stability, Emerging Markets, Regulatory Quality
    JEL: G2
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:127487

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