Baquero, Guillermo
[VerfasserIn]
;
Hamadi, Malika
[Sonstige Person, Familie und Körperschaft];
Heinen, Andréas
[Sonstige Person, Familie und Körperschaft]
Competition, Loan Rates and Information Dispersion in Microcredit Markets
Erschienen in:LSF Working Paper Series ; No. 11-17
Umfang:
1 Online-Ressource (61 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.2006485
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 26, 2012 erstellt
Beschreibung:
We study the effects of competition on loan rates and loan portfolio quality in microcredit markets using a new database from rating agencies, covering 379 for-profit and nonprofit microfinance institutions (MFIs) in 67 countries over 2002-2008. First, we find competitive pressures from increased market share of for-profits. Second, we find that nonprofits are relatively insensitive to concentration changes, while they appear to sustain their competitive advantage stemming from proprietary information on borrowers. In contrast, for-profits charge significantly lower rates and exhibit improved portfolio quality in less concentrated markets. We show that this effect is consistent with an information dispersion mechanism