Determinants of credit rationing: a study of informal lenders and formal credit groups in Madagascar

Previous research on the determinants of credit rationing exclusively focused on the behavior of formal lenders who contract directly with an individual borrower. Based on a household survey in Madagascar, this paper presents an analysis of credit rationing behavior by informal lenders and by member...

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Detalles Bibliográficos
Autor principal: Zeller, Manfred
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 1994
Materias:
Acceso en línea:https://hdl.handle.net/10568/156848
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author Zeller, Manfred
author_browse Zeller, Manfred
author_facet Zeller, Manfred
author_sort Zeller, Manfred
collection Repository of Agricultural Research Outputs (CGSpace)
description Previous research on the determinants of credit rationing exclusively focused on the behavior of formal lenders who contract directly with an individual borrower. Based on a household survey in Madagascar, this paper presents an analysis of credit rationing behavior by informal lenders and by members of community-based groups that allocate formal group loans among themselves. The results show that group members obtain and use locally available information about the applicant's creditworthiness in much the same way that informal lenders do. This paper therefore empirically confirms theoretical arguments made that community-based groups have an information advantage over distant formal bank agents.
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publishDate 1994
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spelling CGSpace1568482025-11-06T05:45:34Z Determinants of credit rationing: a study of informal lenders and formal credit groups in Madagascar Zeller, Manfred banks banking credit Previous research on the determinants of credit rationing exclusively focused on the behavior of formal lenders who contract directly with an individual borrower. Based on a household survey in Madagascar, this paper presents an analysis of credit rationing behavior by informal lenders and by members of community-based groups that allocate formal group loans among themselves. The results show that group members obtain and use locally available information about the applicant's creditworthiness in much the same way that informal lenders do. This paper therefore empirically confirms theoretical arguments made that community-based groups have an information advantage over distant formal bank agents. 1994 2024-10-24T12:45:49Z 2024-10-24T12:45:49Z Working Paper https://hdl.handle.net/10568/156848 en Open Access application/pdf International Food Policy Research Institute Zeller, Manfred. 1994. Determinants of credit rationing: a study of informal lenders and formal credit groups in Madagascar. FCND Discussion Paper 2. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/156848
spellingShingle banks
banking
credit
Zeller, Manfred
Determinants of credit rationing: a study of informal lenders and formal credit groups in Madagascar
title Determinants of credit rationing: a study of informal lenders and formal credit groups in Madagascar
title_full Determinants of credit rationing: a study of informal lenders and formal credit groups in Madagascar
title_fullStr Determinants of credit rationing: a study of informal lenders and formal credit groups in Madagascar
title_full_unstemmed Determinants of credit rationing: a study of informal lenders and formal credit groups in Madagascar
title_short Determinants of credit rationing: a study of informal lenders and formal credit groups in Madagascar
title_sort determinants of credit rationing a study of informal lenders and formal credit groups in madagascar
topic banks
banking
credit
url https://hdl.handle.net/10568/156848
work_keys_str_mv AT zellermanfred determinantsofcreditrationingastudyofinformallendersandformalcreditgroupsinmadagascar