Why the Microfinance Institutions exist: Lending groups as a mechanism to enhance informational symmetry and enforcement activities
Autor(a) principal: | |
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Data de Publicação: | 2017 |
Outros Autores: | , , |
Tipo de documento: | Artigo |
Idioma: | por |
Título da fonte: | Organizações & Sociedade (Online) |
Texto Completo: | https://periodicos.ufba.br/index.php/revistaoes/article/view/15011 |
Resumo: | In this paper, we focus on the economic motivation for the existence of microfinance institutions (MFIs). In doing so, our study contributes to the debate regarding why MFIs exist and, especially, what mechanisms are used to address the risks associated with their operation. In examining the reasons why some individuals are regarded as “non-bankable”, we lay out the basic economic logic that motivates the exclusion of this population from formal credit markets. Next, we show how the lending group methodology overcomes the credit dilemma which sustains and increases the exclusion of the poorest from these formal credit sources. Through this development, we point to the microfinance founding mechanisms: the increase of both the informational symmetry and the enforcement capacity of MFIs through the enhancement of their screening, monitoring and enforcement activities. We also highlight the importance of context and gender for the success of lending groups. Finally, we analyze these mechanisms in the Brazilian context. |
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Organizações & Sociedade (Online) |
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Why the Microfinance Institutions exist: Lending groups as a mechanism to enhance informational symmetry and enforcement activitiesMicrofinanceScreeningMonitoringEnforcementLoan Groups.In this paper, we focus on the economic motivation for the existence of microfinance institutions (MFIs). In doing so, our study contributes to the debate regarding why MFIs exist and, especially, what mechanisms are used to address the risks associated with their operation. In examining the reasons why some individuals are regarded as “non-bankable”, we lay out the basic economic logic that motivates the exclusion of this population from formal credit markets. Next, we show how the lending group methodology overcomes the credit dilemma which sustains and increases the exclusion of the poorest from these formal credit sources. Through this development, we point to the microfinance founding mechanisms: the increase of both the informational symmetry and the enforcement capacity of MFIs through the enhancement of their screening, monitoring and enforcement activities. We also highlight the importance of context and gender for the success of lending groups. Finally, we analyze these mechanisms in the Brazilian context. Núcleo de Pós-graduação em Administração, Escola de Administração, UFBA2017-09-30info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://periodicos.ufba.br/index.php/revistaoes/article/view/15011Organizações & Sociedade; Vol. 24 No. 83 (2017)Organizações & Sociedade; v. 24 n. 83 (2017)1984-92301413-585Xreponame:Organizações & Sociedade (Online)instname:Universidade Federal da Bahia (UFBA)instacron:UFBAporhttps://periodicos.ufba.br/index.php/revistaoes/article/view/15011/14996Copyright (c) 2017 Organizações & Sociedadeinfo:eu-repo/semantics/openAccessMarconatto, Diego Antônio BittencourtCruz, Luciano BarinMoura, Gilnei Luiz deTeixeira, Emidio Gressler2020-01-17T17:25:23Zoai:ojs.periodicos.ufba.br:article/15011Revistahttp://www.revistaoes.ufba.br/PUBhttps://old.scielo.br/oai/scielo-oai.phpcandidab@ufba.br||revistaoes@ufba.br1984-92301413-585Xopendoar:2020-01-17T17:25:23Organizações & Sociedade (Online) - Universidade Federal da Bahia (UFBA)false |
dc.title.none.fl_str_mv |
Why the Microfinance Institutions exist: Lending groups as a mechanism to enhance informational symmetry and enforcement activities |
title |
Why the Microfinance Institutions exist: Lending groups as a mechanism to enhance informational symmetry and enforcement activities |
spellingShingle |
Why the Microfinance Institutions exist: Lending groups as a mechanism to enhance informational symmetry and enforcement activities Marconatto, Diego Antônio Bittencourt Microfinance Screening Monitoring Enforcement Loan Groups. |
title_short |
Why the Microfinance Institutions exist: Lending groups as a mechanism to enhance informational symmetry and enforcement activities |
title_full |
Why the Microfinance Institutions exist: Lending groups as a mechanism to enhance informational symmetry and enforcement activities |
title_fullStr |
Why the Microfinance Institutions exist: Lending groups as a mechanism to enhance informational symmetry and enforcement activities |
title_full_unstemmed |
Why the Microfinance Institutions exist: Lending groups as a mechanism to enhance informational symmetry and enforcement activities |
title_sort |
Why the Microfinance Institutions exist: Lending groups as a mechanism to enhance informational symmetry and enforcement activities |
author |
Marconatto, Diego Antônio Bittencourt |
author_facet |
Marconatto, Diego Antônio Bittencourt Cruz, Luciano Barin Moura, Gilnei Luiz de Teixeira, Emidio Gressler |
author_role |
author |
author2 |
Cruz, Luciano Barin Moura, Gilnei Luiz de Teixeira, Emidio Gressler |
author2_role |
author author author |
dc.contributor.author.fl_str_mv |
Marconatto, Diego Antônio Bittencourt Cruz, Luciano Barin Moura, Gilnei Luiz de Teixeira, Emidio Gressler |
dc.subject.por.fl_str_mv |
Microfinance Screening Monitoring Enforcement Loan Groups. |
topic |
Microfinance Screening Monitoring Enforcement Loan Groups. |
description |
In this paper, we focus on the economic motivation for the existence of microfinance institutions (MFIs). In doing so, our study contributes to the debate regarding why MFIs exist and, especially, what mechanisms are used to address the risks associated with their operation. In examining the reasons why some individuals are regarded as “non-bankable”, we lay out the basic economic logic that motivates the exclusion of this population from formal credit markets. Next, we show how the lending group methodology overcomes the credit dilemma which sustains and increases the exclusion of the poorest from these formal credit sources. Through this development, we point to the microfinance founding mechanisms: the increase of both the informational symmetry and the enforcement capacity of MFIs through the enhancement of their screening, monitoring and enforcement activities. We also highlight the importance of context and gender for the success of lending groups. Finally, we analyze these mechanisms in the Brazilian context. |
publishDate |
2017 |
dc.date.none.fl_str_mv |
2017-09-30 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://periodicos.ufba.br/index.php/revistaoes/article/view/15011 |
url |
https://periodicos.ufba.br/index.php/revistaoes/article/view/15011 |
dc.language.iso.fl_str_mv |
por |
language |
por |
dc.relation.none.fl_str_mv |
https://periodicos.ufba.br/index.php/revistaoes/article/view/15011/14996 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2017 Organizações & Sociedade info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2017 Organizações & Sociedade |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Núcleo de Pós-graduação em Administração, Escola de Administração, UFBA |
publisher.none.fl_str_mv |
Núcleo de Pós-graduação em Administração, Escola de Administração, UFBA |
dc.source.none.fl_str_mv |
Organizações & Sociedade; Vol. 24 No. 83 (2017) Organizações & Sociedade; v. 24 n. 83 (2017) 1984-9230 1413-585X reponame:Organizações & Sociedade (Online) instname:Universidade Federal da Bahia (UFBA) instacron:UFBA |
instname_str |
Universidade Federal da Bahia (UFBA) |
instacron_str |
UFBA |
institution |
UFBA |
reponame_str |
Organizações & Sociedade (Online) |
collection |
Organizações & Sociedade (Online) |
repository.name.fl_str_mv |
Organizações & Sociedade (Online) - Universidade Federal da Bahia (UFBA) |
repository.mail.fl_str_mv |
candidab@ufba.br||revistaoes@ufba.br |
_version_ |
1799698970379812864 |