“Competition, Loan Rates and Information Dispersion in Microcredit Markets” by G. Baquero, Malika Hamadi, and Andréas Heinen; published by the European School of Management and Technology; November 21, 2011; 58 pages; available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2006485&
This paper compares both nonprofit and for-profit microcredit providers to investigate what effect competition has on loan rates and portfolio-at-risk ratios. The study uses data from 359 microbanks in 67 countries from the years 2002 through 2008. The results indicate that for-profit microbanks charge significantly lower rates and exhibit improved portfolio-at-risk ratios in less concentrated markets, while nonprofits are relatively insensitive to changes in market concentration.
“2011 Eastern Europe and Central Asia Regional Snapshot” by Ralitsa Sapundzhieva, Agharazi Babayev and Olga Tomilova; published by Microfinance Information Exchange (MIX) and CGAP (Consultative Group to Assist the Poor), February 2012; 29 pages; available at http://www.themix.org/publications/mix-microfinance-world/2012/02/2011-eastern-europe-and-central-asia-regional-snapshot
This document is a set of graphs and tables that provide information on the performance of microfinance institutions (MFIs) in Eastern Europe and Central Asia in 2010 and 2011, including information on the funding environment for these MFIs. Key themes include recovery from the financial crisis, scaling up of banks and trends in funding structure. Market development information for each of the following countries is also included: Bosnia and Herzegovina, Kyrgyzstan, Azerbaijan, Russia and Georgia.
“Economic-Strengthening Pathways for the Bottom Billion: Connecting the Dots,” by Poverty Outreach Working Group (POWG); published by the Small Enterprise Education and Promotion (SEEP) Network; December 2011; 20 pages; available at http://www.microfinancegateway.org/p/site/m/template.rc/1.1.14263/
This report focuses on how to reach very poor people through microenterprise development and microfinance programs and services. It is based on a discussion among 53 practitioners, researchers and policymakers on the website of the United States Agency for International Development (USAID). Topics include developing common conceptual frameworks and definitions; developing indicators for impact measurement; and encouraging opportunities for learning and collaboration.
By Natalie Baer, Research Associate
Sources and Additional Resources:
“Competition, Loan Rates and Information Dispersion in Microcredit Markets” http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2006485&
“2011 Eastern Europe and Central Asia Regional Snapshot” http://www.themix.org/publications/mix-microfinance-world/2012/02/2011-eastern-europe-and-central-asia-regional-snapshot
“Economic-Strengthening Pathways for the Bottom Billion: Connecting the Dots” http://www.microfinancegateway.org/p/site/m/template.rc/1.1.14263/
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