Microfinance Group Processes and Crises: Responses to Economic and Psychological Threats

Dube, Anjana; Kamath, Rajalaxmi

doi:10.1080/00220388.2018.1539475

Cited by 4 publications

(7 citation statements)

References 13 publications

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“…In this respect, studies have concluded that, in times of crisis, it is essential that MFIs have instruments based on credit ratings enabling them to assess the risk of loan default (De Oliveira and Civitarese, 2019;Van Gool et al, 2012). On the other hand, previous research concluded that the genesis of microfinance crises is in economic and psychological aspect in imminent payment (Dube & Kamath, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of default risk in microfinance institutions under the Basel III framework

2021

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International organizations such as OECD, WBG, IMF, UN and EU, as well as research studies, have highlighted the increasing contribution being made by microcredit finance institutions (MFIs) to financial inclusion, sustainable economic development and the fight against poverty. However, access to MFI credit is still far from the desired level for small and micro-enterprises, especially in developing countries. The countries of Latin America and the Caribbean, where approximately half of the small formal companies do not have access to credit, have the world's highest financial gap ratio compared to potential demand (87%). In this context, effective instruments are needed to assess default risk, through credit ratings. Based on the Basel III regulations, an empirical study was conducted of two microcredit portfolios corresponding to two MFIs in two Latin American countries (Bolivia and Colombia) during the period 2012-2015, to identify the explanatory variables of the probability of default on loans granted by MFIs, using a logistic regression model and a neural network. The results obtained show that the main variables in this respect are the amount of the loan, the number of payments in arrears, the guarantees provided, the assessment of the credit analyst, male gender of the borrower and the level and trend of the general stock exchange index. The conclusions presented advance previous research findings and may be useful for MFI managers, regulatory institutions, financial analysts, scholars, policy-makers and applicants for microcredits to undertake a business project, especially in times of emerging crisis, such as that caused by the Covid-19 pandemic.

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Section: Literature Reviewmentioning

confidence: 99%

Analysis of default risk in microfinance institutions under the Basel III framework

2021

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“…Traditional multiple regression statistical models cannot explain complex things, which requires simultaneous discussions and predictions of the relationship between multiple variables and the path analysis of causal models among variables --SEM (Dube et al, 2019). This paper uses SEM to describe the influence of subjective and objective factors on college students' psychological changes.…”

Section: Construction Of Model Of Psychological Crisismentioning

confidence: 99%

Early Warning Model of College Students' Psychological Crises Based on Big Data Mining and SEM

Liu

2023

International Journal of Information Technologies and Systems Approach

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In recent years, the psychological problems of college students could not be ignored, as they have seriously affected the growth of students and the normal teaching order of colleges and universities. However, there exists a strong noise in college students' psychological sample data set and a strong correlation between its data. Aiming to solve this problem, this paper proposes a psychological crisis warning method for college students based on big data mining and structural equation model (SEM). This method is oriented to massive user data in social networks. Particle swarm optimization is introduced to improve the random forest algorithm, and the original data is labeled to alleviate the impact of data noise on the recognition accuracy. The simulation example comes from an efficient actual data set in the southern China. The experimental results show that the proposed method can achieve an efficient analysis of actual complex data, and can provide reliable psychological auxiliary diagnosis for practitioners.

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“…This distinction between ultimate and proximate causes of behaviour (Tinbergen, 1963) is sometimes blurred in the social science literature particularly relating to human cooperation (Alexander, 1987;West et al, 2007a). In group lending, for example, proximate motivations and emotions like fear (Dube and Kamath, 2018), trust (van Bastelaer and Leathers, 2006) or a "preference" for others'…”

Section: Summary and Clarifying Commentsmentioning

confidence: 99%

“…This distinction between ultimate and proximate causes of behaviour (Tinbergen, 1963 ) is sometimes blurred in the social science literature, particularly relating to human cooperation (Alexander, 1987 ; West et al, 2007a ). In group lending, for example, proximate motivations and emotions like fear (Dube & Kamath, 2018 ), trust (van Bastelaer & Leathers, 2006 ) or a ‘preference’ for others’ payoffs (Carpenter & Williams, 2014 ) do not distinguish between the ultimate assortment mechanisms at play. People may ‘trust’ both their kin and repeated interaction partners, but this does not explain why trust is directed towards these particular categories of people.…”

Section: Evolutionary Theories Of Cooperation and Predictions For Mic...mentioning

confidence: 99%

Banking on cooperation: an evolutionary analysis of microfinance loan repayment behaviour

2020

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Microfinance Group Processes and Crises: Responses to Economic and Psychological Threats

Cited by 4 publications

References 13 publications

Analysis of default risk in microfinance institutions under the Basel III framework

Analysis of default risk in microfinance institutions under the Basel III framework

Early Warning Model of College Students' Psychological Crises Based on Big Data Mining and SEM

Banking on cooperation: an evolutionary analysis of microfinance loan repayment behaviour

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