Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns … as to their effect on bank risk-taking incentives. In a model of •nancial fragility that incorporates bank capital and a … bank incentive problem, we show that loan guarantees reduce depositor runs and improve bank underwriting standards, except …

Using household surveys and bank penetration data at the district-level in 2006 and 2009, we explore the impact of … Equity Bank — a leading private commercial bank focusing on microfinance on the access to banking in Kenya. Equity Bank … commercial banks in Kenya. Equity Bank presence has a positive and significant impact on households’ use of bank accounts and …