Determinants of repayment performance in credit groups
Group lending has received much attention in recent years because of its perceived potential in providing financial services to poor households that lack traditional collateral. The analysis in this paper focuses on the effects of program design, community and group characteristics on the repayment performance of groups, using a data set on groups from six different lending programs in Madagascar. The results show that socially cohesive groups pool risks by diversifying the members' asset portfolio so that their repayment performance is improved even in communities with high-risk exposure.
|Date of creation:||1996|
|Contact details of provider:|| Postal: 1201 Eye Street, NW, Washington, DC 20005-3915|
Web page: http://www.ifpri.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hossain, Mahabub, 1988. "Credit for alleviation of rural poverty: the Grameen Bank in Bangladesh," Research reports 65, International Food Policy Research Institute (IFPRI).
- Udry, Christopher, 1990. "Credit Markets in Northern Nigeria: Credit as Insurance in a Rural Economy," World Bank Economic Review, World Bank Group, vol. 4(3), pages 251-269, September.
- Bardhan, Pranab, 1993. "Analytics of the institutions of informal cooperation in rural development," World Development, Elsevier, vol. 21(4), pages 633-639, April.
- Varian, H.R., 1989. "Monitoring Agents With Other Agents," Papers 89-18, Michigan - Center for Research on Economic & Social Theory.
- Huppi, Monika & Feder, Gershon, 1990.
"The Role of Groups and Credit Cooperatives in Rural Lending,"
World Bank Research Observer,
World Bank Group, vol. 5(2), pages 187-204, July.
- Huppi, Monika & Feder, Gershon, 1989. "The role of groups and credit cooperatives in rural lending," Policy Research Working Paper Series 284, The World Bank.
- Bhatt, V. V., 1988. "On financial innovations and credit market evolution," World Development, Elsevier, vol. 16(2), pages 281-292, February.
- Besley, Timothy & Coate, Stephen, 1995. "Group lending, repayment incentives and social collateral," Journal of Development Economics, Elsevier, vol. 46(1), pages 1-18, February.
- Besley, T. & Coate, S., 1991. "Group Lending, Repayment Incentives And Social Collateral," Papers 152, Princeton, Woodrow Wilson School - Development Studies.
- Robert M. Townsend, 1995. "Financial Systems in Northern Thai Villages," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1011-1046.
- Stiglitz, Joseph E, 1990. "Peer Monitoring and Credit Markets," World Bank Economic Review, World Bank Group, vol. 4(3), pages 351-366, September. Full references (including those not matched with items on IDEAS)