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Author: Maurice Kugler
Publisher:
ISBN:
Category : Commercial credit
Languages : en
Pages : 37
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Book Description
Author: Maurice Kugler
Publisher:
ISBN:
Category : Commercial credit
Languages : en
Pages : 37
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Book Description
Author: R. Mersland
Publisher: Springer
ISBN: 113739966X
Category : Business & Economics
Languages : en
Pages : 329
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Book Description
Research on MFI performance is still in its infancy. MFIs are hybrid organizations with dual objectives. Performance studies in microfinance are therefore less straightforward compared to performance studies in traditional banking research. This book contains new MFI performance research by top scholars from across the globe.
Author: Ahmet Altinok
Publisher:
ISBN:
Category :
Languages : en
Pages : 36
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Book Description
I study group lending with joint-liability contracts offered by Microfinance Institutions (MFIs). I develop a model of group lending where heterogeneous agents form groups, obtain capital from the MFI, and share risks among themselves. This paper shows that the composition of the groups is not always homogeneous once risk-sharing is introduced, rationalizing the empirical evidence of risk heterogeneity within groups. Moreover, I find that joint-liability introduces inefficiency for risk-averse borrowers, which explains why MFIs are moving away from joint-liability contracts. Surprisingly, the first best can sometimes be achieved even in the presence of information asymmetry.
Author: Thorsten Beck
Publisher: World Bank Publications
ISBN:
Category : Bank
Languages : en
Pages : 58
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Book Description
Access to financial services, or rather the lack thereof, is often indiscriminately decried as a problem in many developing countries. The authors argue that the "problem of access" should rather be analyzed by identifying different demand and supply constraints. They use the concept of an access possibilities frontier, drawn for a given set of state variables, to distinguish between cases where a financial system settles below the constrained optimum, cases where this constrained optimum is too low, and-in credit services-cases where the observed outcome is excessively high. They distinguish between payment and savings services and fixed intermediation costs, on the one hand, and lending services and different sources of credit risk, on the other hand. The authors include both supply and demand side frictions that can lead to lower access. The analysis helps identify bankable and banked population, the binding constraint to close the gap between the two, and policies to prudently expand the bankable population. This new conceptual framework can inform the debate on adequate policies to expand access to financial services and can serve as the basis for an informed measurement of access.
Author: Anupama Sethi
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This thesis concentrates on group lending, which is considered a major force behind the successful operation of microcredit institutions. This research explores group-lending mechanisms and group-formation techniques which improve repayment performance and reduce group failures. Group-lending microcredit institutions lend to low-income groups who cannot offer collateral. By making a group of borrowers jointly responsible for loan repayments, the idea of social collateral has gained credence. The Grameen Model uses this as a substitute for physical collateral. An alternative group-lending model, Self-Help Group (SHG) requires members to save first to meet a certain threshold level of savings. This process helps to develop and strengthen bonds among members of the group while pooling their savings. These savings serve as partial physical collateral and provide an incentive to repay loans. In the first of the three long essays that form the body of this research, the distinctive features of both the Grameen Model and the SHG Model are compared through laboratory experiments to identify the mechanisms that can improve repayment performance. The results indicate that the joint impact of both social and partial physical collateral is of far more benefit than the individual impact of either. Using an experimental approach, the second essay explores the impact of social ties on group solidarity. Group solidarity is expressed in terms of meeting the threshold level of group contribution. The results indicate that social proximity among members enhances group contribution and, thus, may help in the voluntary provision of the public good. In the context of Self-Help Group lending, members need to save first and then seek access to loans from banks against these savings. We find that social ties make it easier for the group to reach the threshold level of savings and thus procure partial physical collateral, which in turn increases repayment performance. This result may have ramifications for group-lending institutions as well as for the provision of a public good that relies on group contributions. The existing literature shows that joint liability and self -selection of group members results in homogeneous group formation in terms of the risk characteristics of the borrower's project. In the third essay we develop a theoretical model to demonstrate the feasibility of heterogeneous group formation. We consider the impact of different forms of intra-group transfers on group formation and find that only a particular form of intra-group transfer, referred to as indirect joint liability and revenue sharing (IJLRS), results in heterogeneous group formation. This may serve as an informal intra-group insurance mechanism. Overall, this thesis increases our understanding of the group-lending strategies of microfinance institutions. The results obtained in this thesis can be used by policy makers and microfinance institutions. The ultimate aim is for microfinance institutions to be able to increase their outreach, in order to help more people get out of poverty.
Author: Beatriz Armendariz
Publisher: World Scientific
ISBN: 9814295655
Category : Business & Economics
Languages : en
Pages : 700
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Book Description
Handbook of Microfinance addresses the gap between clients who are benefiting from access to financial services via MFIs, and the potential market, which remains underserved or untapped. This gap can be attributed to a "mismatch" between what consumers, or potential clients, demand and what MFIs offer in terms of financial products. The scope of the book is wide. It includes successes and failures, main challenges and debates, methodologies for impact evaluation via random trials, leading trends in Asia versus Latin America, main efforts in Africa, the importance of value chains in Central America, ethical and gender issues, savings, microinsurance, governance, commercialization trends and the potential advantages and disadvantages of it. Lastly it features main lessons from informal finance and 19th-century credit cooperatives addressing the above-mentioned mismatch.
Author: Orazio Attanasio
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Evaluations of group savings and lending programs have largely focused on average impacts, rather than distributional impacts -- finding modest effects on long-term economic well-being. In this paper, we exploit the randomized roll-out of a self-help group lending program in rural Bihar, India (Hoffmann et al., 2021) to demonstrate that well-functioning groups facilitate risk-sharing within rural communities. We find no impact of the program on risk-sharing, measured as a reduction in the variance of consumption growth, in the aggregate. However, the program significantly improves risk-sharing in regions where it had greater institutional capacity and was better implemented. Building on our theoretical framework, we provide evidence of a specific channel of impact: program quality and pre-existing scale improve the quality and functioning of groups, which in turn increase the insurance value of the program to communities.
Author: Xavier Gine
Publisher: World Bank Publications
ISBN: 0609181742
Category : Bank Policy
Languages : en
Pages : 38
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Book Description
Group liability is often portrayed as the key innovation that led to the explosion of the microcredit movement, which started with the Grameen Bank in the 1970s and continues on today with hundreds of institutions around the world. Group lending claims to improve repayment rates and lower transaction costs when lending to the poor by providing incentives for peers to screen, monitor, and enforce each other's loans. However, some argue that group liability creates excessive pressure and discourages good clients from borrowing, jeopardizing both growth and sustainability. Therefore, it remains unclear whether group liability improves the lender's overall profitability and the poor's access to financial markets. The authors worked with a bank in the Philippines to conduct a field experiment to examine these issues. They randomly assigned half of the 169 pre-existing group liability 'centers' of approximately twenty women to individual-liability centers (treatment) and kept the other half as-is with group liability (control). We find that the conversion to individual liability does not affect the repayment rate, and leads to higher growth in center size by attracting new clients.
Author: Mark Carey
Publisher: University of Chicago Press
ISBN: 0226092984
Category : Business & Economics
Languages : en
Pages : 669
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Book Description
Until about twenty years ago, the consensus view on the cause of financial-system distress was fairly simple: a run on one bank could easily turn to a panic involving runs on all banks, destroying some and disrupting the financial system. Since then, however, a series of events—such as emerging-market debt crises, bond-market meltdowns, and the Long-Term Capital Management episode—has forced a rethinking of the risks facing financial institutions and the tools available to measure and manage these risks. The Risks of Financial Institutions examines the various risks affecting financial institutions and explores a variety of methods to help institutions and regulators more accurately measure and forecast risk. The contributors--from academic institutions, regulatory organizations, and banking--bring a wide range of perspectives and experience to the issue. The result is a volume that points a way forward to greater financial stability and better risk management of financial institutions.
Author:
Publisher: Lulu.com
ISBN: 9291316695
Category : Bank capital
Languages : en
Pages : 294
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Book Description
