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Microfinance asymmetric information problems in Cameroon

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  • Jacob Tche

    (Faculty of Economics and Management, University of Yaounde II, Cameroon)

Abstract

In recent financial liberalisation debates, increasing attention has been paid to the role of financial intermediation on the economy. Little research addressing the behaviour of bank lending interest rates under a financial liberalisation system has been articulated. This paper, therefore, draws a parallel between a completely liberalised microfinance and independent banks under financial liberalisation to indicate that in the presence of imperfect information there is a high probability of banks exhibiting a monopolistic behaviour. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Jacob Tche, 2009. "Microfinance asymmetric information problems in Cameroon," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(5), pages 633-648.
  • Handle: RePEc:wly:jintdv:v:21:y:2009:i:5:p:633-648 DOI: 10.1002/jid.1503
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    References listed on IDEAS

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    1. Carmen M. Reinhart & Ioannis Tokatlidis, 2003. "Financial Liberalisation: The African Experience," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(Supplemen), pages 53-88, September.
    2. Arestis, Philip & Basu, Santonu, 2004. "Financial globalisation and regulation," Research in International Business and Finance, Elsevier, pages 129-140.
    3. Kaushik Basu, 2003. "Analytical Development Economics: The Less Developed Economy Revisited," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262523442, January.
    4. Taskin, Fatma & Muradoglu, Gulnur, 2003. "Financial liberalisation: from segmented to integrated economies," Journal of Economics and Business, Elsevier, pages 529-555.
    5. Steel, William F. & Aryeetey, Ernest & Hettige, Hemamala & Nissanke, Machiko, 1997. "Informal financial markets under liberalization in four African countries," World Development, Elsevier, vol. 25(5), pages 817-830, May.
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