MARC Record from Library of Congress

LEADER: 02409cam a22003137a 4500
001 2005705547
003 DLC
005 20060126144105.0
007 cr |||||||||||
008 060126s2006 dcu sb i000 0 eng
010 $a 2005705547
040 $aDLC$cDLC
050 00 $aHG3881.5.W57
100 1 $aMorduch, Jonathan.
245 10 $aFinancial performance and outreach$h[electronic resource] :$ba global analysis of leading microbanks /$cJonathan Morduch, Robert Cull, Asli Demirguc-Kunt.
260 $a[Washington, D.C. :$bWorld Bank,$c2006]
490 1 $aPolicy research working paper ;$v3827
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 1/26/2006.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"Microfinance contracts have proven able to secure high rates of loan repayment in the face of limited liability and information asymmetries, but high repayment rates have not translated easily into profits for most microbanks. Profitability, though, is at the heart of the promise that microfinance can deliver poverty reduction while not relying on ongoing subsidy. The authors examine why this promise remains unmet for most institutions. Using a data set with unusually high quality financial information on 124 institutions in 49 countries, they explore the patterns of profitability, loan repayment, and cost reduction. The authors find that institutional design and orientation matter substantially. Lenders that do not use group-based methods to overcome incentive problems experience weaker portfolio quality and lower profit rates when interest rates are raised substantially. For these individual-based lenders, one key to achieving profitability is investing more heavily in staff costs-a finding consistent with the economics of information but contrary to the conventional wisdom that profitability is largely a function of minimizing cost. "--World Bank web site.
650 0 $aMicrofinance$vCase studies.
650 0 $aBank loans$vCase studies.
700 1 $aCull, Robert J.
710 2 $aWorld Bank.
830 0 $aPolicy research working papers (Online) ;$v3827.
856 40 $uhttp://econ.worldbank.org/external/default/main?pagePK=64165259&piPK=64165421&theSitePK=469372&menuPK=64166093&entityID=000016406_20060124163013