This paper reviews the monetary and credit policies that directly or indirectly bear on the rise and fall of informal credit markets. It also describes the responses of the formal financial sector to the challenges of the informal sector and/or the opportunities in the financial markets.

This paper documents the interactions among borrowers that consist a group assuming joint liability. It describes the participants of group credit, their reasons for joining the group and the conditions why members are willing to assume other people’s debt.

This paper integrates the major results of the various studies on urban informal credit markets (ICMs). While the terms of references cover a wide range of topics, the peculiar characteristics of the Philippine financial system and the limited budget for the study preclude the study from...

Do guarantee programs lead to additionality in agricultural lending? Do guarantee programs contribute to small loans? Do guarantee programs encourage banks to use their own funds? Do guarantee programs reduce the cost of lending to banks and how cost effective are the guarantee programs? These...

Utilizing time-wise autoregressive model to investigate the perception of the international community on the Philippines, which has suffered from debt crisis in 1982, indicates that banker’s creditworthiness assessments are sensitive not only from liquidity and solvency but also from long-term...

Despite deregulation of the financial markets such as liberalization of foreign bank entry and branching, the government continues to directly intervene in the credit markets through several special credit programs. In the effort to restructure the economy, the government has availed the...

The monetary approach to the balance of payments (BOP) takes the view that domestic credit is exogenous to BOP and that it is deteriorated by the excess money, which results from domestic credit expansion. This article determines whether in fact the assertion is true. Utilizing the method...

Rural agents engage in interlocking market transactions to minimize costs due to underdevelopment of rural markets. This study aims to model the economic behavior of agents in a credit-output market. Results indicate the prevalence of high interest rates in developed areas. Where income is low,...

In the nonperformance of the formal financial sector to cater to the needs of some groups, informal measures have been its substitute. The informal credit system becomes a vital channel of credit to small and poor borrowers and in the mobilization of rural savings through innovative mechanisms....

This article is a review attempting to provide the background for a more detailed and rigorous examination, both theoretical and empirical, of the agrarian reform and interlinking issues. It deals largely on market interlinking and credit services, land market and credit interlocking. A welfare...