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on Microfinance |
| By: | Byström, Hans (Department of Economics, Lund University) |
| Abstract: | In this paper we discuss the potential for commercial microfinance in China. Particular emphasis is put on securitization of microloans and on structured microfinance in a China context. Three particular factors that we believe could support a strong growth in Chinese structured microfinance are (i) the lack of currency risk, (ii) the scale advantages and (iii) the massive potential interest from traditional, domestic as well as international, financial firms. On the policy side, structured microfinance could be an important tool for fighting unemployment in China. It could also be used to circumvent corruption or government bureaucracy in the microlending process. |
| Keywords: | commercial microfinance; structured finance; securitization; China |
| JEL: | G10 G21 O16 R51 |
| Date: | 2007–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2007_018&r=mfd |
| By: | Briones, Roehlano |
| Abstract: | The new generation of credit programs directed at small borrowers emphasizes financial sustainability. Based on anecdotal information (especially from microfinance experiences), proponents of cost recovery claim that raising formal lending rates would have a minimal impact on borrowing. Rigorous evidence for this conjecture is however sparse. This study conducts an econometric test of this conjecture using data from a survey of small rice farmers from the Philippines. Alternative regression techniques tend to reject the conjecture; in particular, a regression that controls for selection effects shows a unitary elastic response of formal borrowing to the lending rate. |
| Keywords: | credit demand; interest elasticity; rural credit; credit policy; Philippines; Asia |
| JEL: | O16 Q14 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6044&r=mfd |