Effect of Psychological Factors on Credit Risk: A Case Study of the Microlending Service in Mongolia

Ganbat, Mandukhai; Batbaatar, Erdenebileg; Bazarragchaa, Ganzul; Ider, Togtuunaa; Gantumur, Enkhjargalan; Dashkhorol, Lkhamsuren; Altantsatsralt, Khosgarig; Nemekh, Mandakhbayar; Dashdondog, Erdenebaatar; Namsrai, Oyun-Erdene

doi:10.3390/bs11040047

Cited by 10 publications

(5 citation statements)

References 39 publications

(62 reference statements)

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“…Researchers of NUM carried out the relationship between psychological factors and credit risk in microlending services in Mongolia. The study uses quantitative research methods to analyse the data obtained from a survey of borrowers in the microfinance sector, and the results suggest that psychological factors, such as self-esteem and locus of control, significantly affect credit risk (Ganbat et al, 2021).…”

Section: The Current State Of Psychologymentioning

confidence: 99%

Psychological science in Mongolia: Its history, development, and future prospects

Bayanmunkh,

Shairii,

Battulga

et al. 2024

Neurosci Res Notes

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This review paper explores the history, development, current state, and future prospects of psychological science in Mongolia. The establishment of the first department of pedagogical psychology in 1954 and the publication of the first Mongolian psychology textbook in 1960 marked the initial steps in the field's development. Dr. Sanjjav Damdinjav's pioneering PhD in 1966 and subsequent international representation paved the way for further growth. Currently, most Mongolian psychologists work across both public and private sectors. Education, healthcare, and justice/military services are the key employer groups in the public sector. Promising research has emerged in recent years, focusing on child and youth development, social support and well-being, psychological factors and financial credit risk, and tool adaptation for psychological assessment. Despite these advancements, significant challenges remain. These include a need for nationally licensed graduate programs, limited research funding, an outdated academic system, political interference in public university governance, a shortage of specialised personnel, and high research infrastructure costs. The most pressing issue is the need for graduate programs and corresponding job opportunities for major specialities like clinical, cognitive, and developmental psychology. Potential solutions include introducing graduate programs in key specialities, establishing licensure regulations, addressing systemic gaps, and increasing financial support for research institutions and universities. These steps would lay a strong foundation for the field, fostering its sustained growth and enabling meaningful contributions to Mongolian development.

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Section: The Current State Of Psychologymentioning

confidence: 99%

Psychological science in Mongolia: Its history, development, and future prospects

Bayanmunkh,

Shairii,

Battulga

et al. 2024

Neurosci Res Notes

View full text Add to dashboard Cite

show abstract

“…Topics such as the economic impact of credit supply without prior analysis, bank failure, rising unemployment, GDP contraction, and inadequate resource allocation are among the consequences of excessive indebtedness (Chopra & Mehta, 2022). However, the current analysis for granting credit still seems to have not evolved enough, since it is based mainly on individual income and the individual's credit history, not being sufficiently considered the expenses that the applicant already has to maintain their survival (Ganbat et al, 2021).…”

Section: Final Considerationsmentioning

confidence: 99%

Perception of Financial Well-Being of the Elderly and the Role of Propensity to Indebtedness and Financial Preparation for Retirement

2023

RHSS

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This study aimed to check the impact of financial preparation for retirement and the propensity to indebtedness on the perception of financial well-being in the elderly. A survey-type research was carried out with 885 individuals aged 60 years or older, living in Brazil, regardless of whether they are retired or not. Confirmatory factor analysis and structural equation modelling were used. The results indicated that the construct propensity to indebtedness has a negative impact on financial preparation for retirement and on the perception of financial well-being. The elderly are approaching retirement with a savings deficit and are heavily dependent on income from social security programs to support their families. Furthermore, the positive impact of financial preparation for retirement on the perceived financial well-being was found. Such findings highlight the importance of regulations that deal with the limit of credit supply and that prioritize the requirement of transparency of financial institutions in the disclosure to the less enlightened public. Therefore, it is essential to develop public policies to control indebtedness and incentives for financial preparation for retirement for the elderly in order to achieve better levels of Financial Well-being.

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“…Fernández-López et al ( 2023) conducted a study in Spain. People often overestimate their self-control and hardly comprehend how it affects their finances (Ganbat et al, 2021). They found that a lack of self-control is associated with increased consumer debt, particularly for unsecured personal loans, loans from family or friends, and credit card use.…”

Section: Self-controlmentioning

confidence: 99%

The Effect of Self-Control on Loan Repayment Decisions of Women Market Vendors in Mbeya Municipality, Tanzania

Gomera

Ngollo

2023

J. Theor. Appl. Manage.

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Objective: This study aims to examine the effect of self-control on loan repayment decisions of women market vendors in Mbeya municipality, Tanzania. Design/Methods/Approach: This study employed a mixed research design. Primary data was collected via questionnaires and semi-structured interviews. A stratified random sampling technique was used to come up with a sample of 348 respondents selected from a population of 1741 women market vendors. Finally, descriptive statistics and regression analysis were utilized to process the collected data. Findings: The result of data analysis determined that self-control had a significant adverse effect on loan repayment decision Originality/Value: This study is unique since it studies self-control and loan repayment amongst women market vendors. The specificity of the set population allowed for a more in-depth and nuanced understanding of the experiences and challenges faced by this specific group of individuals hence deriving originality in this research. Practical/Policy implication: Findings are useful to policymakers and microcredit providers. Policymakers should promote activities and education that assist Tanzanians in attaining self-control. They should devise policies to make loans more affordable and easier to repay. Microcredit lenders should utilize subjective measures of self-control on loan applications as it is highly effective in enhancing repayment when coupled with high levels of financial literacy.

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Effect of Psychological Factors on Credit Risk: A Case Study of the Microlending Service in Mongolia

Cited by 10 publications

References 39 publications

Psychological science in Mongolia: Its history, development, and future prospects

Psychological science in Mongolia: Its history, development, and future prospects

Perception of Financial Well-Being of the Elderly and the Role of Propensity to Indebtedness and Financial Preparation for Retirement

The Effect of Self-Control on Loan Repayment Decisions of Women Market Vendors in Mbeya Municipality, Tanzania

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