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on Payment Systems and Financial Technology |
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Issue of 2023‒10‒09
fifteen papers chosen by |
| By: | Dominique Torre (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Qing Xu (UCL - Université catholique de Lille, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur) |
| Abstract: | With fast development of Fintech in financial industry and increasing popularity of cryptocurrencies and stablecoins, more and more central banks conducted extensive research on Central Bank Digital Currencies (CBDCs), the new form of digital fiat currency. Some of them are engaging in CBDCs pilots, with cross border payment tests. Important currency areas as China, EU or UK are interested in the subject but less significative ones as Bahamas, Nigeria, or Venezuela seem also interested in. This chapter aims to analyze this new phase in the development of the forms of money/means of payment. Different forms of CBDCs are imagined: are they different expressions of the same objective or not? Will hey substitute the official currency or other means of payments? Which technology will be activated to make the operational? Which will be the role of banks on this context? How to explain that some big central banks (the Federal Reserve) are not interested in them? Will they generalize? |
| Keywords: | CBDC, People's Bank of China, blockchains, disintermediation, Stable coins, means of payment, currencies, digitalization |
| Date: | 2023–07–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-04194031&r=pay |
| By: | International Monetary Fund |
| Abstract: | The impact of fintech in Trinidad and Tobago is currently concentrated in the payments sector. In meeting with firms utilizing fintech, trade bodies, and public authorities, we found that the impact of fintech is not yet broad based and is permeating primarily in relation to e-money and payment service providers (PSP), and more slowly in other areas such as crowdfunding, robo-advice, and crypto assets. While data on the impact of fintech are limited, we use public information, conversations with authorities and market participants, and applications for licensing and outreach for regulatory support as guides, which suggest that fintech remains relatively concentrated. |
| Date: | 2023–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2023/322&r=pay |
| By: | Lea Bitter (TU Berlin) |
| Abstract: | One of the main concerns associated with central bank digital currencies (CBDC) is the disintermediating effect on the banking sector in general, and the risk of bank runs in times of crisis in particular. This paper examines the implications of an interest-bearing CBDC on banking crises in a dynamic bank run model with a financial accelerator. The analysis distinguishes between bank failures due to illiquidity and due to insolvency. In a numerical exercise, CBDC leads to a reduction in the net worth of banks in normal times but mitigates the risk of a bank run in times of crisis. The financial stability implications also depend on how CBDC is accounted for on the asset side of the central bank balance sheet: if CBDC issuance is offset by asset purchases, it delays the onset of both types of bank failures to larger shocks. In contrast, if CBDC issuance is offset by loans to banks, it substantially impedes failures due to illiquidity, but only marginally affects bank failures due to insolvency. |
| Keywords: | central bank digital currency; financial intermediation; financial stability; bank runs; |
| JEL: | E42 E58 G01 G21 |
| Date: | 2023–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:426&r=pay |
| By: | Gregory E. Elliehausen; Simona Hannon |
| Abstract: | Previous research has found evidence suggesting that financial technology (FinTech) lenders seek out opportunities in markets that have been underserved by mainstream banks. The research focuses primarily on the effect of bank market structure, limited income, and economic hardship in attracting FinTech companies to underserved markets. This paper expands the scope of FinTech research by investigating the role of interest rate regulation of consumer credit and institutional risk segmentation in FinTech lenders' efforts to solicit new customers in the personal loan market. We find that strategic partnerships between FinTech companies and specialist banks target marginal-risk, near-prime, and low-prime consumers for credit card and other debt consolidation loans. These FinTech-bank partnerships especially target marginal consumers in states with low interest rate ceilings. Mainstream banks largely avoid higher-risk consumers, and low rate ceilings inhibit consumer finance company lending |
| Keywords: | Consumer Credit; Access to Credit; Interest Rate Cap; Financial Regulation; FinTech |
| JEL: | G21 G23 G40 |
| Date: | 2023–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2023-56&r=pay |
| By: | Soukaina Boualou (UIT - Université Ibn Tofaïl); Najwa Dorhmi (UIT - Université Ibn Tofaïl); Ilham El Haraoui (UIT - Université Ibn Tofaïl) |
| Abstract: | The banking landscape has undergone a significant transformation with the advent of alternative service delivery channels like mobile banking apps. However, despite the advantages these services offer, their uptake among Moroccan clients remains relatively limited. This study aims to uncover the key factors influencing the decision to adopt such services. In order to do so, we carried out an online survey disseminated through social media and gathered 98 responses from individuals who has a bank account but do not use mobile banking apps. Our findings indicate a significant correlation between perceived effort, perceived usefulness, social influence, and the intention to use mobile banking apps. The used methodology, facilitated the validation and reliability testing of our survey instrument, involving meticulous translation, and rephrasing of all items, and utilizing a five-point Likert scale for measurements. We opted for exploratory factor analysis as the evaluation method, revealing underlying data structures and explaining correlations among our variables. Following this, we tested the hypothesized influence between our dependent and independent variables through multiple regression. Despite our research's valuable insights, it does have limitations. Given our data collection method's online nature, our sample was one of convenience, potentially limiting our findings' generalizability. Nonetheless, our research has substantial practical implications. Banks can use our findings to gain a deeper understanding of what drives customer decisions to adopt mobile banking services, thereby enabling them to tailor their offerings accordingly relationship between the different variables on the intention to use mobile banking services. |
| Abstract: | L'évolution du secteur bancaire a vu l'émergence de services comme les applications mobiles. Cependant, leur adoption par les clients marocains est faible. L'objectif de cette étude est d'examiner les raisons sous-jacentes de cette situation. Une enquête en ligne, diffusée sur les réseaux sociaux et totalisant 98 réponses, a été réalisée auprès de personnes possédant un compte bancaire mais n'utilisant pas ces applications. Les résultats montrent une corrélation entre l'effort perçu, l'utilité perçue, l'influence sociale et l'intention d'utiliser les applications. La méthodologie assurait la validité et la fiabilité des données, avec une attention particulière à la traduction et reformulation des questions, et une échelle de Likert à cinq points. L'analyse factorielle exploratoire a dévoilé la structure des données et a clarifié les liens entre les variables. Les hypothèses ont ensuite été validées par une régression multiple. Malgré la pertinence des découvertes, l'étude présente des limites, notamment à cause de la nature de l'échantillon en ligne. Néanmoins, elle offre des informations utiles pour les banques souhaitant adapter leurs services mobiles selon les besoins et perceptions des clients. |
| Keywords: | Effort expectancy, performance expectancy, Mobile banking, Unified theory of acceptance and use of technology., Effort perçu, utilité perçue, influence sociale, mobile banking, Théorie unifiée de l'acceptation et de l'utilisation de la technologie. |
| Date: | 2023–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04189598&r=pay |
| By: | Anyidoho, Nana Akua; Gallien, Max; Rogan, Mike; van den Boogaard, Vanessa |
| Abstract: | In recent years, more and more governments in lower income countries have been introducing taxes on mobile money transfers as a means to raise revenue. These are often explicitly promoted as a way of taxing informal economic activity, but critics point out their potential negative impact on lower-income groups. Ghana’s electronic transfer levy (E-levy), introduced in May 2022, is a particularly interesting case study. It was explicitly justified as a way of taxing Ghana’s informal economy but includes a 100 cedi ($8.80) per day threshold to limit the tax burden on lower-income groups. Using data from a new survey of 2, 700 self-employed informal workers in the Accra Metropolitan Assembly (AMA) collected in April and May 2022, we examine the likely impact of the E-levy on informal workers from an equity standpoint (with reference to earnings, gender and occupational sector), and explore how this relates to how the levy is perceived. |
| Keywords: | Finance, Work and Labour, |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:18114&r=pay |
| By: | Boualou Soukaina (UIT - Université Ibn Tofaïl); Najwa Dorhmi (UIT - Université Ibn Tofaïl); Pr. Ilham El Haraoui (UIT - Université Ibn Tofaïl) |
| Abstract: | Perceived risk has been the focus of several researches in consumer behavior's field, particularly in light of the rise of new technologies and, specially, mobile phones, notably in the banking industry, where banks constantly strive to solicit the trust of their customers in order to encourage them to use the services offered on mobile applications. Our research outcomes have enabled the development of a valid and reliable measure instrument of perceived risk's concept. This instrument comprises six 6 items covering time risk, social risk, privacy risk and security risk, . However, we decided to exclude three items from the initial list, one related to the social aspect and two related to the performance of mobile banking applications. |
| Abstract: | Le risque perçu a fait l'objet de plusieurs recherches dans le domaine du comportement du consommateur notamment avec l'émergence des nouvelles technologies et celle du mobile en particulier. D'autant plus, dans le secteur bancaire, où les banques s'efforcent constamment à solliciter la confiance de leurs clients afin de les inciter à utiliser les services offerts sur les applications mobiles. Les résultats de cette recherche ont permis de développer un instrument de mesure valide et fiable du risque perçu composé de 6 items liés à la perception du risque temporel, social, de confidentialité et de sécurité tandis que nous avons décidé de retirer trois items de la liste initiale à savoir un item relatif à l'aspect social et deux autres liés à la performance des applications de mobile Banking. |
| Keywords: | Perceived risk, Mobile banking, consumer behavior, measurement instrument, Moroccan bank’s client, e risque perçu, services bancaires mobile, comportement du consommateur, instrument de mesure, client bancaire marocain |
| Date: | 2023–08–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04185120&r=pay |
| By: | International Monetary Fund |
| Abstract: | This technical assistance report describes the regulation and supervision of crypto assets in Lao People’s Democratic Republic (LAO P.D.R.). Crypto uptake in Lao P.D.R. seems to be limited so far, and so consumer protection risks appear contained. The authorities are in the process of considering an appropriate regulatory and supervisory framework for mining and trading activities. The current regulatory framework for crypto trading platforms is a positive step to managing risks but would benefit from key prudential and conduct additions. Authorities should continue their efforts to coordinate domestically and cooperate with foreign peer regulators. Due to the novelty of the industry and the limited size of the Lao PDR market, the most prominent risks arising from crypto trading in the short term are likely to be generated by complex interconnections within crypto markets and broader financial markets. The mission commends the authorities in their coordinated approach to this new regime, and would like to encourage them to continue deepening that coordination. |
| Keywords: | trading platform; Lao PDR market; crypto trading license; market abuse; consumer protection risk; TA recipient; Virtual currencies; Mining sector; Capital markets; Financial sector stability; Blockchain and DLT; Global |
| Date: | 2023–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2023/319&r=pay |
| By: | Felix Aidala; Daniel Mangrum; Wilbert Van der Klaauw |
| Abstract: | “Buy now, pay later” (BNPL) has become an increasingly popular form of payment among Americans in recent years. While BNPL provides shoppers with the flexibility to pay for goods and services over time, usually with zero interest, the Consumer Financial Protection Bureau (CFPB) has identified several areas of potential consumer harm associated with its growing use, including inconsistent consumer protections, and the risk of excessive debt accumulation and over-extension. BNPL proponents have argued that the service enables improved credit access and greater financial inclusion, with approval being quick and relatively easy. More research is needed to assess the overall risks and benefits of BNPL for consumers. As a first step, we draw on new survey data to examine the background and circumstances of consumers who receive and take up BNPL offers. We find both the availability and use of BNPL to be fairly widespread but see disproportionate take-up among consumers with unmet credit needs, limited credit access, and greater financial fragility. While BNPL expands financial inclusion, especially to those with low credit scores, there is a risk that these payment plans contribute to excessive debt accumulation and over-extension. |
| Keywords: | Buy Now Pay Later (BNPL); credit access; household borrowing; financial inclusion; inequality |
| JEL: | D14 |
| Date: | 2023–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:96929&r=pay |
| By: | Kenechukwu E. Anadu; Pablo D. Azar; Catherine Huang; Marco Cipriani; Thomas M. Eisenbach; Gabriele La Spada; Mattia Landoni; Marco Macchiavelli; Antoine Malfroy-Camine; J. Christina Wang |
| Abstract: | Stablecoins and money market funds both seek to provide investors with safe, money-like assets but are vulnerable to runs in times of stress. In this paper, we investigate similarities and differences between the two, comparing investor behavior during the stablecoin runs of 2022 and 2023 to investor behavior during the money market fund runs of 2008 and 2020. We document that, similarly to money market fund investors, stablecoin investors engage in flight to safety, with net flows from riskier to safer stablecoins during run periods. However, whereas in money market funds, run risk has historically materialized only in prime funds, with stablecoins, runs occurred in different stablecoin types across the 2022 and 2023 episodes. We also show that, similarly to intrafamily flows in money market funds, stablecoin flows tend to be within blockchains. Finally, for stablecoins, we estimate a discrete “break-the-buck” threshold of $0.99, below which redemptions accelerate. |
| Keywords: | stablecoins; money market mutual funds; financial stability; Crypto Assets; runs; liquidity transformation |
| JEL: | G10 G20 G23 |
| Date: | 2023–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsr:96880&r=pay |
| By: | Ivo Maes (Robert Triffin Chair, University of Louvain and Visiting Fellow, Bruegel) |
| Abstract: | Gianni Toniolo was one of Italy’s, and Europe’s, foremost economic historians. Unfortunately, he suddenly passed away in November 2022, a few weeks after he had presented in Rome his newest book, the first volume of his history of the Bank of Italy, Storia della Banca d’Italia. Tomo I. Formazione ed evoluzione di una banca centrale, 1893-1943 (History of the Bank of Italy. Part I. Formation and evolution of a central bank, 1893-1943). Toniolo’s history of the Bank of Italy illustrates very well many issues which are at the heart of the literature on central banking. What emerges very well is the gradual transformation of the Bank of Italy, from an emission bank to a central bank, with a growing public character of the Bank. The early relationship between the Bank of Italy and the commercial banks was often one of business rivalry and competition. Through time, the Bank of Italy gained the monopoly of the emission of banknotes but had to stop its commercial activities, while being entrusted with responsibilities in the supervision of the commercial banks. Toniolo’s book covers a turbulent period in Italian monetary history, with several banking crises. Monetary policy was dominated by the issue of the reconciliation of two contrasting objectives: the exchange rate of the lira and the stability of the banking system. A distinguishing feature of the Italian experience of central banking is how the development of the Bank of Italy was embedded in the process of nation-building. In other countries, where the nation-state was established before the central bank, this was very much a process of extending the network of branches. In Italy, where the process of unification was later, it implied the merger of emission banks, a much more delicate political issue. |
| Keywords: | central banking, Bank of Italy, banking crises, financial stability, Italian lira |
| JEL: | E42 E58 G28 N10 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202309-441&r=pay |
| By: | Jesse Bricker; Geng Li |
| Abstract: | Chetty et al. (2022a) introduced an array of social capital measures derived from Facebook friendships and found that one of these indicators, economic connectedness (EC), predicted upward income mobility well. Bricker and Li (2017) proposed the average credit score of a community's residents as an indicator of local social trust. We show in this paper that the average credit scores are robustly correlated with EC, negatively correlated with the friending-bias measure introduced in Chetty et al. (2022b), and predict economic mobility to a comparable extent after controlling for EC. The consistency and complementarity between these two indicators, despite being derived from individuals' activities in distinct contexts, underscore trust as a crucial component of social capital and provide insights that are useful for understanding the formation and accumulation of social capital. |
| Keywords: | social trust; social capital; economic mobility; credit score |
| JEL: | D14 G10 G41 G50 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:96647&r=pay |
| By: | Jihane Jaouad (fsjes Agdal - Laboratoire d'études et de recherches en sciences de gestion); Ali Ouchekkir (fsjes Agdal - Laboratoire d'études et de recherches en sciences de gestion) |
| Abstract: | Nowadays, digital transformation has taken a prominent place in various economic sectors, including banking. The Moroccan banking sector has not escaped this global trend, where digitalization has brought a real revolution in financial practices and services. The objective of this research work is to study in depth the digital transformation in the Moroccan banking sector by opting for an analysis of the internal process, banking practices and financial services. Particular attention will be paid to establishing an appropriate link between the competitiveness of banking institutions and digitalization, taking care to mention the relevant theories relating to this digitalization. We will try to identify the major changes induced by digitalization and to highlight the potential benefits in terms of profitability. To achieve our objective, and after a theoretical exploration phase based on a literature review, we chose a qualitative approach through semi-directive interviews. These interviews were conducted with a representative sample of 12 branches belonging to various Moroccan banks. It should be stressed that we sought the expertise of industry professionals in order to gather detailed responses, which would enable us to carry out an in-depth and detailed analysis of our problem, thus providing a better understanding of the subject. The responses and data collected revealed signs of innovation in products and practices, highlighting the challenges and opportunities related to digital transformation. These findings help to identify the factors for success or failure of this digitalization, while providing insight into future prospects. In the current context, characterized by a series of crises and a trend towards digital transition, this study takes on a singular and relevant significance. It stands out as an essential contribution to a better understanding of the changes in Moroccan banking, proposing appropriate measures to meet the challenges and seize the opportunities of the digital revolution. The qualitative approach offers in-depth and contextualized information from professionals, filling an academic gap and providing practical recommendations for the digital transformation of the Moroccan banking sector. |
| Abstract: | De nos jours, la transformation digitale a pris une place prépondérante dans divers secteurs économiques, y compris celui de la banque. Le secteur bancaire marocain n'a pas échappé à cette tendance mondiale, où la digitalisation a entraîné une véritable révolution dans les pratiques et les services financiers. L'objectif de ce travail de recherche est d'étudier en profondeur la transformation digitale dans le secteur bancaire marocain en optant à une analyse du processus interne, des pratiques bancaires et des services financiers. Une attention particulière sera portée sur l'établissement d'une liaison adéquate entre la compétitivité des institutions bancaires et la digitalisation, en prenant soin de mentionner les théories pertinentes se rapportant à cette digitalisation. Nous nous attacherons à identifier les changements majeurs induits par la digitalisation et de mettre en évidence les bénéfices potentiels en termes de rentabilité. Pour atteindre notre objectif, et après une phase d'exploration théorique basée sur une revue de la littérature, nous avons choisi une approche qualitative par des entretiens semi-directifs. Ces entretiens ont été menés auprès d'un échantillon représentatif de 12 agences appartenant à différentes banques marocaines. Il convient de souligner que nous avons sollicité l'expertise des professionnels de l'industrie afin de recueillir des réponses détaillées, qui nous permettront une analyse approfondie et détaillée de notre problématique, apportant ainsi une meilleure compréhension du sujet. Les réponses et les données recueillies ont révélé des signes d'innovation des produits et des pratiques, mettant en évidence les défis et opportunités liés à la transformation digitale. Ces constatations permettent d'identifier les facteurs de réussite ou d'échec de cette digitalisation, tout en fournissant un aperçu des perspectives futures. Dans le contexte actuel, caractérisé par une série de crises et une tendance vers la transition numérique, cette étude revêt une signification singulière et pertinente. Elle s'impose comme une contribution essentielle visant à mieux comprendre les changements dans la banque marocaine, en proposant des mesures adaptées pour relever les défis et saisir les opportunités de la révolution digitale. L'approche qualitative offre des informations approfondies et contextualisées auprès des professionnels, comblant une lacune académique et fournissant des recommandations pratiques pour la transformation digitale du secteur bancaire marocain. |
| Keywords: | Digital transformation, Moroccan banks, Competitive banking, Moroccan customer, Transformation digitale, Banques marocaines, Compétitivité bancaire, Client marocain |
| Date: | 2023–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04191437&r=pay |
| By: | Abderrahim Jaadani (fsjes Agdal - Laboratoire d'études et de recherches en sciences de gestion); Ali Ouchekkir (fsjes Agdal - Laboratoire d'études et de recherches en sciences de gestion) |
| Abstract: | The undertaken study aims to examine the reasons for the delay in implementing financial technologies in both the conventional and participatory insurance sectors in Morocco while providing recommendations to overcome these obstacles. To achieve these objectives, a qualitative research approach was adopted, involving industry professionals to obtain detailed responses using semi-structured interview methods. This method facilitated a comprehensive analysis of our research problem. The obtained results revealed the existence of several difficulties and barriers hindering the implementation of financial technologies in the insurance sector in Morocco. These obstacles include resistance to change within companies, regulatory constraints, concerns about data security, and the need to train employees in new technologies. All these factors have contributed to the delayed adoption of financial technologies in the Moroccan insurance sector. However, the study does not merely highlight the obstacles; it also proposes recommendations to overcome them. Among these recommendations are raising awareness and providing training to stakeholders about the benefits of financial technologies, establishing a regulatory framework conducive to innovation, strengthening cybersecurity measures, and fostering collaboration among sector actors to promote the adoption of financial technologies. This study holds particular significance in the current context characterized by multiple crises and a focus on digital transformation. Indeed, it represents the first attempt to explore and analyze the specific challenges of implementing financial technologies in the insurance sector in Morocco while offering tailored solutions for industry professionals. By shedding light on these challenges and providing practical recommendations, this study contributes to stimulating the development of the Moroccan insurance sector in the era of digital transformation. |
| Abstract: | L'étude entreprise vise à examiner les raisons du retard de l'implémentation des technologies financières dans le secteur assurantiel conventionnel et participatif au Maroc, tout en proposant des recommandations pour surmonter ces obstacles. Afin d'atteindre ces objectifs, une approche de recherche qualitative a été adoptée, faisant appel aux professionnels de l'industrie pour obtenir des réponses détaillées à l'aide de la méthode des entretiens semi- directifs. Cette méthode a permis de fournir une analyse approfondie de notre problématique. Les résultats obtenus ont révélé l'existence de plusieurs difficultés et barrières entravant l'implémentation des technologies financières dans le secteur assurantiel au Maroc. Parmi ces obstacles, on peut citer la résistance au changement au sein des entreprises, les contraintes réglementaires, les préoccupations en matière de sécurité des données et la nécessité de former les employés aux nouvelles technologies. Ces facteurs ont tous contribué à retarder l'adoption des technologies financières dans le secteur assurantiel marocain. Toutefois, l'étude ne se contente pas de mettre en évidence les obstacles, elle propose également des recommandations pour les surmonter. Parmi ces recommandations, on peut citer la sensibilisation et la formation des parties prenantes aux avantages des technologies financières, la mise en place d'un cadre réglementaire favorable à l'innovation, le renforcement de la cybersécurité et la collaboration entre les acteurs du secteur pour favoriser l'adoption des technologies financières. Cette étude revêt une importance particulière dans le contexte actuel marqué par une accumulation de crises et une orientation vers la transformation numérique. En effet, elle représente la première tentative de découvrir et d'analyser les difficultés spécifiques à l'implémentation des technologies financières dans le secteur assurantiel au Maroc, tout en proposant des solutions adaptées aux professionnels du secteur. En mettant en lumière ces défis et en offrant des recommandations pratiques, cette étude contribue à stimuler le développement du secteur assurantiel marocain dans l'ère de la transformation digitale. |
| Keywords: | Financiel technology, insurance, Takaful, insurtech, Technologie financière, assurance, Assurtech |
| Date: | 2023–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04191438&r=pay |
| By: | Bátiz-Zuk Enrique; González-Holden Alexa |
| Abstract: | This paper investigates how gender disparities affect the time to repay group micro-finance loans using survival analysis and hazard decomposition techniques. We also control for the effect of the COVID-19 pandemic on the time needed by micro-finance loan borrowers to repay. We use a large sample of bank microfinance group loans from August 2017 to August 2021. Despite the fact that female borrowers' overall default rate is smaller, our unconditional estimates show that female borrowers default almost the equivalent of three consecutive installments earlier. Moreover, this result persists when we control for micro, industry, and macroeconomic factors. We also observe that the COVID-19 pandemic materialized as a spike in aggregate default rates that gradually reduced afterward. Our study identified a potential gender gap that has been understudied in the literature. |
| Keywords: | Credit markets;Microfinanceloan;Group lending;Gender;Survival analysis |
| JEL: | C41 G21 J16 O12 O16 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:bdm:wpaper:2023-07&r=pay |