This paper examines a much overlooked link between credit markets and formalization: since access to bank credit … bank credit is more widely available at lower cost. The relevance of this credit channel is gauged using the Rajan …

(disciplinary effect). By channeling bank capital it reduces banks' agency costs from lending directly to borrowers, limiting banks … constrain formal banks, shallow pockets hamper informal lenders. In such economies, informal finance has two effects. By … increasing the investment return it decreases borrowers' relative payoff following default, inducing banks to lend more liberally …

This paper evaluates the impact of the introduction of savings groups on poverty, vulnerability, and financial …, we investigate the impact of savings groups after more than two years of exposure. We find t hat savings groups channel … savings groups increases female labor market participation and, in poorer areas, it fosters greater specialization in …

Bank of Chile in 2007, 2008, 2009 and 2010, which covers between 1,740 and 2,533 urban households, performing both OLS and …