Micro-finance Competition with Motivated MFIs

In this paper we examine the effect of increased MFI competition, focusing on its implications for borrower targeting, both in the presence and the absence of double-dipping. In the absence of competition we find that the loans are more likely to go to relatively richer borrowers whenever inequality...

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Main Authors: GUHA, Brishti, ROY CHOWDHURY, Prabal
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2012
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Online Access:https://ink.library.smu.edu.sg/soe_research/1327
https://ink.library.smu.edu.sg/context/soe_research/article/2326/viewcontent/MicrofinancecompetitionwithmotivatedMFIs.pdf
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spelling sg-smu-ink.soe_research-23262019-04-19T14:29:23Z Micro-finance Competition with Motivated MFIs GUHA, Brishti ROY CHOWDHURY, Prabal In this paper we examine the effect of increased MFI competition, focusing on its implications for borrower targeting, both in the presence and the absence of double-dipping. In the absence of competition we find that the loans are more likely to go to relatively richer borrowers whenever inequality is not too large, and the technology is sufficiently convex. In the presence of competition, the results depend on whether double-dipping is feasible or not. In case double-dipping is not feasible, we find that the MFIs necessarily target the richer borrowers. Interestingly, it turns out that double-dipping may encourage the MFIs to give loans to the poor, rather than the rich. Further, our analysis raises doubts regarding the benefits of encouraging coordination among the MFIs. 2012-02-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/1327 https://ink.library.smu.edu.sg/context/soe_research/article/2326/viewcontent/MicrofinancecompetitionwithmotivatedMFIs.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University Micro-finance competition motivated MFIs inequality borrower targeting technology Finance
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Micro-finance competition
motivated MFIs
inequality
borrower targeting
technology
Finance
spellingShingle Micro-finance competition
motivated MFIs
inequality
borrower targeting
technology
Finance
GUHA, Brishti
ROY CHOWDHURY, Prabal
Micro-finance Competition with Motivated MFIs
description In this paper we examine the effect of increased MFI competition, focusing on its implications for borrower targeting, both in the presence and the absence of double-dipping. In the absence of competition we find that the loans are more likely to go to relatively richer borrowers whenever inequality is not too large, and the technology is sufficiently convex. In the presence of competition, the results depend on whether double-dipping is feasible or not. In case double-dipping is not feasible, we find that the MFIs necessarily target the richer borrowers. Interestingly, it turns out that double-dipping may encourage the MFIs to give loans to the poor, rather than the rich. Further, our analysis raises doubts regarding the benefits of encouraging coordination among the MFIs.
format text
author GUHA, Brishti
ROY CHOWDHURY, Prabal
author_facet GUHA, Brishti
ROY CHOWDHURY, Prabal
author_sort GUHA, Brishti
title Micro-finance Competition with Motivated MFIs
title_short Micro-finance Competition with Motivated MFIs
title_full Micro-finance Competition with Motivated MFIs
title_fullStr Micro-finance Competition with Motivated MFIs
title_full_unstemmed Micro-finance Competition with Motivated MFIs
title_sort micro-finance competition with motivated mfis
publisher Institutional Knowledge at Singapore Management University
publishDate 2012
url https://ink.library.smu.edu.sg/soe_research/1327
https://ink.library.smu.edu.sg/context/soe_research/article/2326/viewcontent/MicrofinancecompetitionwithmotivatedMFIs.pdf
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