Dimensions and dynamics of microfinance membership overlap – a micro study from Bangladesh

Chaudhury, Iftekhar A.; Matin, Imran

doi:10.3362/0957-1329.2002.021

“…Moreover, our model predicts that strategic default occurs when many lending institutions o¤er loans to the same borrowers, and do not condition the loan on repayment of debt to some of the other lenders. While the evidence is far from being conclusive, Chaudhury and Matin (2002) and McIntosh and Wydick (2005) document evidence that is consistent with this observation.…”

Section: Community Structure and Cooperationmentioning

confidence: 92%

Community Structure and Market Outcomes: A Repeated Games in Networks Approach

Fainmesser

¹

2010

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractConsider a large market with asymmetric information, in which sellers choose whether to cooperate or deviate and 'cheat' their buyers, and buyers decide whether to re-purchase from di¤erent sellers. We model active trade relationships as links in a buyer-seller network and suggest a framework for studying repeated games in such networks. In our framework, buyers and sellers have rich yet incomplete knowledge of the network structure; allowing us to derive meaningful conditions that determine whether a network is consistent with trade and cooperation between every buyer and seller that are connected.We show that three network features reduce the minimal discount factor necessary for sustaining cooperation: moderate competition, sparseness, and segregation. We …nd that the incentive constraints rule out networks that maximize the volume of trade and that the constrained trade maximizing networks are in between 'old world' segregated and sparse networks, and a 'global market'. (JEL: A14, C73, D82, D85, L14)

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“…This led to a crisis in the microfinance sector in Andhra Pradesh and in India as a whole in 2010 (CGAP 2010;Wright and Sharma 2010). In Bangladesh too, there is evidence of a high level of multiple borrowing and/or multiple membership among clients of MFIs like Grameen Bank and BRAC (Chaudhury and Matin 2002;Rutherford 2006). Evidence from Pakistan shows about 21% of MFI borrowers has loans from more than one MFI (Chen et al 2010).…”

Section: Financial Inclusion In South Asia: Positioning Sri Lankamentioning

confidence: 99%

Financial Inclusion, Regulation, and Education in Sri Lanka

Kelegama

¹

,

Tilakaratna

²

2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org AbstractSri Lanka has achieved a high level of financial inclusion compared to other South Asian countries. Its financial sector comprises a wide range of financial institutions providing financial services such as loans, savings, pawning, leasing and finance, and remittance and money transfer facilities. There is also evidence that a larger share of households in Sri Lanka accesses multiple financial institutions for their credit and savings needs. However, the use of insurance services, ATM facilities, e-payments, and mobile banking, is relatively low. Financial education is ad hoc and lags behind financial innovation and new products. The information technology (IT) literacy rate is only 35% in Sri Lanka, and with the growing IT-finance nexus, financial awareness and education have become all the more important. Strengthening the regulatory framework governing the microfinance sector and client protection is also crucial for improving financial inclusion in Sri Lanka. Much scope remains to improve financial inclusion, particularly related to cost and quality of financial services provided, and the sustainability of financial institutions.

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“…should also reduce problems of delinquency and over-indebtedness (Wright, 2001;Chaudhury and Matin, 2002;Meyer, 2002;Karlan and Mullainathan, 2006;Schicks, 2011).…”

Section: The Importance Of Flexibilitymentioning

confidence: 99%