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Microcredit and price competition : standardize to differentiate

Casini, Paolo - 2014

Microfinance institutions, despite the presence of competition and informational asymmetries, typically offer a limited … consequences in terms of strategic interaction and borrower welfare. We model an oligopolistic market in which Microfinance …

Persistent link: https://www.econbiz.de/10010336175

Do Credit Constraints Limit Entrepreneurship? Heterogeneity in the Returns to Microfinance

Banerjee, Abhijit V. - 2020

years after microfinance–an intervention commonly believed to lower the cost of credit and spark business creation … “gung-ho entrepreneurs” (GEs)–those who started a business before microfinance entered–more access to microfinance. Notably …, these effects persist two years after microfinance was withdrawn from Hyderabad. However, any persistent benefits to …

Persistent link: https://www.econbiz.de/10012852837

Chapter 8. Financial Intermediation

Gorton, Gary; Winton, Andrew - 2003

The savings/investment process in capitalist economies is organized around bank-like financial intermediaries (“banks”), making them a central institution of economic growth. These intermediaries borrow from consumer/savers and lend to companies that need resources for investment. In...

Persistent link: https://www.econbiz.de/10014023868

On the existence of credit rationing and screening with loan size in competitive markets with imperfect information

Kraus, Daniel - 2013 - This version: September 10, 2013

Although credit rationing has been a stylized fact since the groundbreaking papers by Stiglitz and Weiss (1981, hereinafter S-W) and Besanko and Thakor (1987a, hereinafter B-T), Arnold and Riley (2009) note that credit rationing is unlikely in the S-W model, and Clemenz (1993) shows that it does...

Persistent link: https://www.econbiz.de/10009790502

The threat of capital drain : a rationale for public banks?

Hakenes, Hendrik; Schnabel, Isabel - 2006

This paper yields a rationale for why subsidized public banks may be desirable from a regional perspective in a financially integrated economy. We present a model with credit rationing and heterogeneous regions in which public banks prevent a capital drain from poorer to richer regions by...

Persistent link: https://www.econbiz.de/10010373500

Bank lending, geographical distance, and credit risk : an empirical assessment of the Church Tower Principle

Carling, Kenneth; Lundberg, Sofia - 2002

Does the Church Tower Principle, i.e. geographical proximity between borrowing firm and lending bank, matter in credit risk management? If so, the bank might expose itself to a greater risk by lending to distant firms and should therefore respond by rationing them harder. In this paper we...

Persistent link: https://www.econbiz.de/10011585141

Credit market imperfection, lack of entrepreneurs and capital outflow from a developing economy

Marjit, Sugata; Mishra, Suryaprakash - 2020

This paper explores the impact of credit market on the entrepreneurs and demand for credit in a credit constrained economy and the resultant impact on the capital flows. In standard trade models the capital flows across countries are explained as a result of the rate of return differentials due...

Persistent link: https://www.econbiz.de/10012263312

Quantifying credit gaps using survey data on discouraged borrowers

Akbas, Ozan E.; Betz, Frank; Gattini, Luca - 2023 - This Version: 20 September 2023

The credit gap in this study is given by the financing needs of firms that are bankable but discouraged from applying for a loan. To quantify the credit gap, we combine a scoring model that assesses the creditworthiness of discouraged firms with a credit allocation rule. Our study covers 35...

Persistent link: https://www.econbiz.de/10014443611

Hasan, Iftekhar; Lee, Haekwon; Qiu, Buhui; Saunders, Anthony - 2023

Using lenders becoming members of the Task Force on Climate-Related Financial Disclosures (TCFD) as a plausible exogeneous shock, we examine whether and how lenders' commitment to transparent climate-related disclosures affects borrower firms' environmental performance. We find that client firms...

Persistent link: https://www.econbiz.de/10014248728

Group lending versus individual lending in microfinance

Lehner, Maria - 2009

Microfinance is typically associated with joint liability of group members. However, a large part of microfinance … contracts. Moreover, we show that microfinance institutions offer group loans when the loan size is rather large, refinancing … costs are high, and competition between microfinance institutions is low. Otherwise, individual loans are offered …

Persistent link: https://www.econbiz.de/10003935668