Competition, Loan Rates, and Information Dispersion in Nonprofit and For-Profit Microcredit Markets
We describe the competitive environment of microcredit markets globally and we study the effects of competition on loan rates of microfinance institutions (MFIs). We use a new database from rating agencies, covering 379 for-profit and nonprofit MFIs in 67 countries over 2002–2008. Controlling for in...
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| Veröffentlicht in: | Journal of money, credit and banking credit and banking, 2018-08, Vol.50 (5), p.893-937 |
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| container_end_page | 937 |
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| container_issue | 5 |
| container_start_page | 893 |
| container_title | Journal of money, credit and banking |
| container_volume | 50 |
| creator | BAQUERO, GUILLERMO HAMADI, MALIKA HEINEN, ANDRÉAS |
| description | We describe the competitive environment of microcredit markets globally and we study the effects of competition on loan rates of microfinance institutions (MFIs). We use a new database from rating agencies, covering 379 for-profit and nonprofit MFIs in 67 countries over 2002–2008. Controlling for interest rate ceilings and other country-specific factors, we first find that nonprofits are relatively insensitive to industry-wide concentration changes, while for-profits charge significantly lower rates in less concentrated markets. Second, we find spillover effects between the for-profit and nonprofit segments. Third, we show that the effects of concentration are consistent with an information dispersion mechanism. |
| doi_str_mv | 10.1111/jmcb.12472 |
| format | Article |
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| ispartof | Journal of money, credit and banking, 2018-08, Vol.50 (5), p.893-937 |
| issn | 0022-2879 1538-4616 |
| language | eng |
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| source | Jstor Complete Legacy; Wiley Online Library Journals Frontfile Complete |
| subjects | bank competition G21 Humanities and Social Sciences information dispersion loan rates Markets Microfinance nonprofit institutions Nonprofit organizations Profits |
| title | Competition, Loan Rates, and Information Dispersion in Nonprofit and For-Profit Microcredit Markets |
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