This paper investigates the role of credit market frictions in the transmission of monetary shocks in Pakistan. First, using macro data, it is shown that banking spreads are countercyclical, even it is controlled for credit risk, monetary policy and potential maturity mismatches. It is found...

The paper has argued that to expand coverage of micro-pensions, social entrepreneurship (along with social responsibility) will be needed by the financial sector, including the MFIs, insurance companies and mutual funds. Such entrepreneurship should aim to drastically reduce overall transaction...