Microfinance institutions and the bank lending channel in Asia and Latin America

Azofra, Sergio Sanfilippo; Torre-Olmo, Begoña; Cantero-Saiz, María

doi:10.1016/j.asieco.2019.06.001

Cited by 3 publications

(3 citation statements)

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“…Microfinance is considered one of the most effective and important tools for eradicating poverty especially in developing countries; and existing evidence illustrate that microfinance in Africa is developing at all three levels of the financial system -micro (financial services provider), medium (provider of support services); and, macro (policy, regulatory framework, and supervision) which makes the significant contributors to emerging economies financial systems (Mago, 2014a;Mushtaq & Bruneau, 2019;Samer et al, 2015;Sanfilippo-Azofra, Torre-Olmo, & Cantero-Saiz, 2019;UN, 2013).…”

Section: Microfinance In Developing Countriesmentioning

confidence: 99%

“…Most profit-oriented microfinance institutions use individual or group loans. Instead of being used for SME investment (due to the larger size), most of these loans are used for consumption or education or health care services especially as they have collateral (Bayai & Ikhide, 2018;Fall, Akim, & Wassongma, 2018;Sanfilippo-Azofra et al, 2019). With the participation of microfinance programs, there has been a significant improvement in family health research behaviors and health services, (Bhuiya, Khanam, Rahman, & Nghiem, 2018;Faruqee, 2010;InM, 2015).…”

Section: Microfinance In Developing Countriesmentioning

confidence: 99%

“…2 and inefficiencies among MFIs. So far a tailored framework to suit the operational environment of MFIs in economies with low-income earners who are considered risky by traditional banks, (Abor, 2016;Fall et al, 2018;Sanfilippo-Azofra et al, 2019;UN, 2013). In this view, we can see that the main goal of these organizations, is to stay in business and also been profitable, irrespective of the challenges and the level of risk existing in the financial system (Moyo, 2018;Tapera & Mbira, 2016).…”

Section: Business and Economic Researchmentioning

confidence: 99%

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Civil Servant Borrowing Practices: A Determinant of Poverty in Zimbabwe

Zhongming

Mangudhla

Mbona

2020

BER

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In assessing microfinance institutions (MFIs) and civil servants' perspectives on borrowing in Zimbabwe, we examine the purpose and rationale of MFIs establishments. Thus, in an attempt to understand the reason behind high borrowing, we also considered loan terms, the nature of loans issued, and the uses of MFIs borrowed funds among households. Driven by the exploratory approach, qualitative research involving semi-structured interviews and observation methods were applied in this study. Using, the purpose of the loan, pricing of loans, repayment terms, and loan terms, interview questions were designed and conducted. Our results show that MFIs loans are: short term loans, income (salary) based; and, these loans are mainly for immediate household consumption needs not an investment. This study also indicates that loan application requirements are more favorable for employed households, especially public sector employees. Even though civil servants have a better advantage in accessing MFIs loans, in the long run, they are likely to remain in poverty; since their purpose of borrowing is geared towards family expenses. Also, MFIs prevailing interest rates (high), evidenced with shorter repayment periods, reflect their failure to pull borrowers out of poverty; however, creating an interdependence syndrome of continuous borrowing. Since we focused on lending practices of households, our results serve as a basis of a joint policy formulation in combating poverty. Thus, understanding poverty through the borrowing of employed citizens aids in grasping the interconnectedness of sectors; which, is an essential tool for sustainable development and strategic planning.

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Section: Microfinance In Developing Countriesmentioning

confidence: 99%