I study the coexistence of formal and informal finance in underdeveloped credit markets. While weak institutions …' extension of borrower credit (rent-extraction effect). Among other things, the model shows that informal interest rates are … stylized facts in poor societies. -- Credit Markets ; Financial Development ; Institutions ; Market Structure …

screen out high credit risk and potentially increase access to credit for small business owners in Peru. We use … entrepreneurs who were offered a loan based on the traditional credit-scoring method versus the EFL tool. We find that the … entrepreneurs - i.e., those with a credit history. For unbanked entrepreneurs - i.e., those without a credit history - using the EFL …