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From a Supply Gap to a Demand Gap? The Risk and Consequences of Over-indebting the Underbanked

In: Microfinance in Developing Countries

Author

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  • Jessica Schicks

Abstract

The microfinance sector is used to extensive debates about its mission.2 However, in one regard, the goal has always been clear: microfinance, whether or not it was impact focused and poverty focused, has always been about extending small-scale financial services to the underbanked. The aim has been to reach those who are not normally served by the formal financial system.

Suggested Citation

  • Jessica Schicks, 2013. "From a Supply Gap to a Demand Gap? The Risk and Consequences of Over-indebting the Underbanked," Palgrave Macmillan Books, in: Jean-Pierre Gueyie & Ronny Manos & Jacob Yaron (ed.), Microfinance in Developing Countries, chapter 8, pages 152-177, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-30192-5_8
    DOI: 10.1057/9781137301925_8
    as

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    2. Vogelgesang, Ulrike, 2003. "Microfinance in Times of Crisis: The Effects of Competition, Rising Indebtedness, and Economic Crisis on Repayment Behavior," World Development, Elsevier, vol. 31(12), pages 2085-2114, December.
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    12. Dani Rodrik & Mark Rosenzweig (ed.), 2010. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 5, number 6.
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    Cited by:

    1. Meager, Rachael, 2022. "Aggregating distributional treatment effects: a Bayesian hierarchical analysis of the microcredit literature," LSE Research Online Documents on Economics 115559, London School of Economics and Political Science, LSE Library.
    2. Dan Brockington & Nicola Banks, 2014. "Exploring the Success of BRAC Tanzania’s Microcredit Programme," Global Development Institute Working Paper Series 20214, GDI, The University of Manchester.

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    More about this item

    Keywords

    Lending Institution; Household Debt; Mission Drift; Strategic Default; Group Lending;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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