Results 251 to 260 of about 416,017 (292)

Group lending with adverse selection

European Economic Review, 2000
Abstract We focus on adverse selection as a foundation of group lending. In a simple static model we show that there is no collateral effect if borrowers do not know each other. If the borrowers know each other, group lending implements efficient lending.
Laffont, Jean-Jacques, N'Guessan, Tchétché   +1 more
openaire   +2 more sources

Group lending and individual lending with strategic default

Journal of Development Economics, 2010
Abstract Papers that compare group lending and individual lending in the presence of strategic default suggest that unless group members can impose costly social sanctions on one another, or unless the bank uses cross-reporting mechanisms group lending may do worse than individual lending.
Bharat Bhole, Sean Ogden
openaire   +1 more source

Group Lending under Costly Group Formation

SSRN Electronic Journal, 2004
The success of joint liability programs depends on nature and composition of borrowing groups. Group formation is a costly process and in our model these costs vary with the social identity of group partners. We show that risk heterogeneity in a borrowing group may arise due to the social identity of the agents.
Prabirendra Chatterjee, Sudipta Sarangi
openaire   +1 more source

Microfinance Beyond Group Lending

Economics of Transition, 2000
Microlending is growing in Eastern Europe, Russia and China as a flexible means of widening access to financial services, both to help alleviate poverty and to encourage private‐sector activity. We describe mechanisms that allow these programmes to successfully penetrate new segments of credit markets.
Beatriz Armendáriz de Aghion, Jonathan Morduch   +1 more
openaire   +1 more source

Group lending, sorting, and risk sharing

Games and Economic Behavior, 2020
zbMATH Open Web Interface contents unavailable due to conflicting licenses.
openaire   +1 more source

Individual Lending versus Group Lending in Microfinance: An analytical Study

Siddhant- A Journal of Decision Making, 2019
Microfinance, over the years, has evolved from the traditional joint liability method to the new innovations such as individual lending and differential banking. Institutes which initially focussed only on production loans are now also attempting to provide consumption loan to the existing and potential customers.
Ashish Chaturvedi, Hari Prapan Sharma
openaire   +1 more source

Group lending under asymmetric information

Journal of Development Economics, 1999
Abstract This paper examines joint liability loan contracts as part of a screening mechanism adopted by lenders using group lending schemes. A model and one-period game are introduced in order to analyze the type of optimal loan contracts that emerge when lenders have less information than borrowers.
openaire   +2 more sources

Repayment performance in group lending: Evidence from Jordan [PDF]

Journal of Development Economics, 2012
Abstract Using data from a survey of 160 urban borrowing groups of the Microfund for Women in Jordan, we investigate the effect of screening, peer monitoring, group pressure, and social ties on borrowing groups' repayment behavior as an indirect test of different theoretical models.
Sudipta Sarangi, Moh'd Al-Azzam, R. Carter Hill   +2 more
openaire   +1 more source

The role of group size in group lending

Journal of Development Economics, 2015
Abstract This paper explores group size in joint liability lending, primarily in the adverse selection framework with local borrower information. A single, standardized contract that imposes full joint liability subject to a limited liability cap is optimal.
openaire   +1 more source

Credit Rationing, Group Lending and Optimal Group Size

Annals of Public and Cooperative Economics, 1998
I develop a model of credit rationing with effort unobservable by lenders where borrowers can choose among projects of different riskiness. In such a set‐up rationing that can be relaxed if borrowers put up physical collateral arises. Group lending proves to be a possible means to relax rationing and improve efficiency when physical collateral is not ...
openaire   +1 more source