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2020-06-09 - Colloque/Présentation - communication orale - Anglais - 27 page(s) (A publier)

Caballero-Montes Tristan , "How Does Competition Affect the Fate of Poor Borrowers in Rate-Capped Microfinance Markets?" in Mardi de la Recherche, Université de Mons, Mons, Belgique, 2020

  • Codes CREF : Economie des PVD (DI4375)
  • Unités de recherche UMONS : Economie et gestion de l'entreprise (W742)
  • Instituts UMONS : Institut de Recherche en Développement Humain et des Organisations (HumanOrg)
  • Centres UMONS : Microfinance (CERMI)

Abstract(s) :

(Anglais) The microfinance industry has encountered substantial growth and evolution since its early days. As the sector developed and commercialized, competition increased with valuable but also worrying effects. In the meantime, the rapid commercialization of the industry drew the attention of regulators. Especially, many governments have been more and more tempted to cap lending interest rates, a measure generally considered as counterproductive from a social perspective. With a consolidated dataset comprising 1018 microfinance institutions from 74 countries over 2015-2018, we assess the effect of interest rate caps on the average loan size provided by microfinance institutions with fixed-effect regressions. Going one step further, we use a moderation analysis and the Herfindahl-Hirschman and Lerner indexes to understand how competition affects this initial relation. Our findings suggest that institutions facing interest rate caps tend to provide larger loans on average and that competition amplifies this phenomenon.


Mots-clés :
  • (Anglais) Competition
  • (Anglais) Outreach
  • (Anglais) Regulation
  • (Anglais) Interest rate cap
  • (Anglais) Microfinance
  • (Anglais) Moderation