Credit Reporting at the Base of the Pyramid : Key Issues and Success Factors
Over the past five years, the microcredit sector has experienced unprecedented growth. The number of borrowers served by microfinance institutions (MFIs) has increased threefold to reach 120 million clients, according to MIX estimates as of Decembe...
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| Format: | Working Paper |
| Language: | English en_US |
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International Finance Corporation and CGAP, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/941861468169469410/Credit-reporting-at-the-base-of-the-pyramid-key-issues-and-success-factors http://hdl.handle.net/10986/26880 |
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okr-10986-26880 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
| topic |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO LOANS ACCESSIBILITY ACCURATE INFORMATION AFFORDABILITY ARREARS ASSET QUALITY ASSET VALUES ASSETS AUDITS BANK SUPERVISION BANKING AUTHORITIES BANKING AUTHORITY BANKING MARKETS BANKING SUPERVISION BENEFITS OF CREDIT BORROWER BORROWING CAPACITY BUILDING CENTRAL BANK CENTRAL BANK OF BOSNIA AND HERZEGOVINA CENTRAL REGISTRY COLLATERAL COMMERCIAL BANKING COMMERCIAL BANKS COMPETITIVE MARKETS COMPLIANCE COSTS CONSUMER FINANCE CONSUMER GOODS CONSUMER LENDING CONSUMER LOAN CONSUMER LOANS CONSUMER PROTECTION COOPERATIVES COSTS OF CREDIT CREDIT BUREAU CREDIT BUREAUS CREDIT CARD CREDIT DECISIONS CREDIT DISCIPLINE CREDIT HISTORIES CREDIT HISTORY CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT INSTITUTIONS CREDIT MARKET CREDIT PORTFOLIOS CREDIT PRODUCTS CREDIT PROVIDERS CREDIT REGISTRIES CREDIT REGISTRY CREDIT REPORT CREDIT REPORTING CREDIT REPORTING SYSTEM CREDIT REPORTS CREDIT RISK CREDIT SCORES CREDIT SCORING CREDIT-WORTHINESS CREDITORS CREDITS CREDITWORTHINESS CUSTOMER BASE DEBT DEBT COLLECTION DEBT RATIOS DEFAULTS DEMAND FOR CREDIT DONOR SUPPORT DOWN MARKET ECONOMICS EMERGING MARKETS EXCESSIVE INDEBTEDNESS EXISTING CREDIT FAMILIES FINANCE COMPANIES FINANCIAL ACCESS FINANCIAL DISCIPLINE FINANCIAL INNOVATION FINANCIAL LITERACY FINANCIAL NEEDS FINANCIAL PRODUCTS FINANCIAL PROVIDERS FINANCIAL SERVICES FINANCIAL SERVICES PROVIDERS FINANCIAL SYSTEM FOREIGN INVESTMENT FORM OF CREDIT FORMAL CREDIT FORMAL FINANCIAL INSTITUTIONS FRAUD GENDER GENDER EQUALITY GROUP GUARANTEES GROUP LENDING GROUP LOANS HIGH INTEREST RATES HOUSEHOLD INCOME HOUSEHOLDS HOUSING INCOME LEVELS INDEBTEDNESS INDIVIDUAL LOANS INFORMAL LENDERS INFORMAL SECTOR LENDERS INFORMATION INFRASTRUCTURE INFORMATION SHARING INFORMATION SYSTEM INFORMATION TECHNOLOGY INSURANCE INTERNATIONAL CREDIT JURISDICTION LATE PAYMENT LEGAL FRAMEWORK LEGAL RIGHTS LENDER LENDING DECISIONS LENDING INSTITUTIONS LEVEL OF CREDIT LEVELS OF DEBT LOAN AMOUNTS LOAN APPLICATION LOAN CONTRACTS LOAN DATA LOAN OFFICER LOAN PORTFOLIOS LOAN SIZE LOAN UNDERWRITING LOANS FROM BANKS LOCAL MARKET LOW-INCOME BORROWERS LOW-INCOME CONSUMERS LOW-INCOME FAMILIES MANDATE MARKET CONDITIONS MARKET INCENTIVES MARKET LEVEL MARKET PARTICIPANTS MARKET RISKS MARKET SHARE MATURE MARKETS MATURITY MFI MICROBORROWERS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MONEYLENDERS NATURAL DISASTERS NEW CREDIT NONPERFORMING LOANS OFFERINGS OUTREACH OUTSTANDING ASSET OUTSTANDING LOAN PEER REVIEW POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO PORTFOLIO ANALYSIS POTENTIAL BORROWER PRIVATE CREDIT PRIVATE CREDIT BUREAU PRODUCTIVITY PRUDENTIAL REGULATION PUBLIC CREDIT PUBLIC RECORDS PUBLIC REGISTRY RECORD KEEPING REGULATORY AUTHORITIES REGULATORY AUTHORITY REGULATORY BARRIERS REGULATORY CONSTRAINTS REGULATORY FRAMEWORK REPAYMENT REPAYMENT DISCIPLINE REPAYMENT HISTORY REPAYMENT INCENTIVES REPAYMENTS RESERVE RESERVE BANK RESERVE BANK OF INDIA RISK MANAGEMENT RISK MANAGEMENT SYSTEMS RURAL FINANCE SALARIES SAVINGS SOCIAL NETWORKS SOURCES OF FINANCE TELECOMMUNICATIONS TRANSACTION TRANSACTION COSTS TRANSPARENCY TURNOVER VALUABLE ASSET VILLAGE |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO LOANS ACCESSIBILITY ACCURATE INFORMATION AFFORDABILITY ARREARS ASSET QUALITY ASSET VALUES ASSETS AUDITS BANK SUPERVISION BANKING AUTHORITIES BANKING AUTHORITY BANKING MARKETS BANKING SUPERVISION BENEFITS OF CREDIT BORROWER BORROWING CAPACITY BUILDING CENTRAL BANK CENTRAL BANK OF BOSNIA AND HERZEGOVINA CENTRAL REGISTRY COLLATERAL COMMERCIAL BANKING COMMERCIAL BANKS COMPETITIVE MARKETS COMPLIANCE COSTS CONSUMER FINANCE CONSUMER GOODS CONSUMER LENDING CONSUMER LOAN CONSUMER LOANS CONSUMER PROTECTION COOPERATIVES COSTS OF CREDIT CREDIT BUREAU CREDIT BUREAUS CREDIT CARD CREDIT DECISIONS CREDIT DISCIPLINE CREDIT HISTORIES CREDIT HISTORY CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT INSTITUTIONS CREDIT MARKET CREDIT PORTFOLIOS CREDIT PRODUCTS CREDIT PROVIDERS CREDIT REGISTRIES CREDIT REGISTRY CREDIT REPORT CREDIT REPORTING CREDIT REPORTING SYSTEM CREDIT REPORTS CREDIT RISK CREDIT SCORES CREDIT SCORING CREDIT-WORTHINESS CREDITORS CREDITS CREDITWORTHINESS CUSTOMER BASE DEBT DEBT COLLECTION DEBT RATIOS DEFAULTS DEMAND FOR CREDIT DONOR SUPPORT DOWN MARKET ECONOMICS EMERGING MARKETS EXCESSIVE INDEBTEDNESS EXISTING CREDIT FAMILIES FINANCE COMPANIES FINANCIAL ACCESS FINANCIAL DISCIPLINE FINANCIAL INNOVATION FINANCIAL LITERACY FINANCIAL NEEDS FINANCIAL PRODUCTS FINANCIAL PROVIDERS FINANCIAL SERVICES FINANCIAL SERVICES PROVIDERS FINANCIAL SYSTEM FOREIGN INVESTMENT FORM OF CREDIT FORMAL CREDIT FORMAL FINANCIAL INSTITUTIONS FRAUD GENDER GENDER EQUALITY GROUP GUARANTEES GROUP LENDING GROUP LOANS HIGH INTEREST RATES HOUSEHOLD INCOME HOUSEHOLDS HOUSING INCOME LEVELS INDEBTEDNESS INDIVIDUAL LOANS INFORMAL LENDERS INFORMAL SECTOR LENDERS INFORMATION INFRASTRUCTURE INFORMATION SHARING INFORMATION SYSTEM INFORMATION TECHNOLOGY INSURANCE INTERNATIONAL CREDIT JURISDICTION LATE PAYMENT LEGAL FRAMEWORK LEGAL RIGHTS LENDER LENDING DECISIONS LENDING INSTITUTIONS LEVEL OF CREDIT LEVELS OF DEBT LOAN AMOUNTS LOAN APPLICATION LOAN CONTRACTS LOAN DATA LOAN OFFICER LOAN PORTFOLIOS LOAN SIZE LOAN UNDERWRITING LOANS FROM BANKS LOCAL MARKET LOW-INCOME BORROWERS LOW-INCOME CONSUMERS LOW-INCOME FAMILIES MANDATE MARKET CONDITIONS MARKET INCENTIVES MARKET LEVEL MARKET PARTICIPANTS MARKET RISKS MARKET SHARE MATURE MARKETS MATURITY MFI MICROBORROWERS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MONEYLENDERS NATURAL DISASTERS NEW CREDIT NONPERFORMING LOANS OFFERINGS OUTREACH OUTSTANDING ASSET OUTSTANDING LOAN PEER REVIEW POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO PORTFOLIO ANALYSIS POTENTIAL BORROWER PRIVATE CREDIT PRIVATE CREDIT BUREAU PRODUCTIVITY PRUDENTIAL REGULATION PUBLIC CREDIT PUBLIC RECORDS PUBLIC REGISTRY RECORD KEEPING REGULATORY AUTHORITIES REGULATORY AUTHORITY REGULATORY BARRIERS REGULATORY CONSTRAINTS REGULATORY FRAMEWORK REPAYMENT REPAYMENT DISCIPLINE REPAYMENT HISTORY REPAYMENT INCENTIVES REPAYMENTS RESERVE RESERVE BANK RESERVE BANK OF INDIA RISK MANAGEMENT RISK MANAGEMENT SYSTEMS RURAL FINANCE SALARIES SAVINGS SOCIAL NETWORKS SOURCES OF FINANCE TELECOMMUNICATIONS TRANSACTION TRANSACTION COSTS TRANSPARENCY TURNOVER VALUABLE ASSET VILLAGE Lyman, Timothy Lythgoe, Tony Miller, Margaret Reille, Xavier Sankaranarayan, Shalini Credit Reporting at the Base of the Pyramid : Key Issues and Success Factors |
| relation |
FORUM;No. 1 |
| description |
Over the past five years, the
microcredit sector has experienced unprecedented growth. The
number of borrowers served by microfinance institutions
(MFIs) has increased threefold to reach 120 million clients,
according to MIX estimates as of December 2009 and by other
estimates the number may be as high 190 million (Microcredit
Summit Campaign 2011). In large markets, such as Mexico and
South Africa, commercial banks and consumer lending
companies have expanded their activities to include
microfinance for low-income households. Unfortunately, the
growth of microcredit is not always sustainable. Some iconic
markets, such as India and Bosnia Herzegovina, are
experiencing large-scale credit crises, and they are not
alone. The deterioration in the quality of MFI loan
portfolios can be attributed to several factors. Some fast
growing MFIs have outgrown their risk management systems and
controls. These weaknesses have often been exacerbated by
high staff turnover, leading to a further erosion of credit
discipline. Rapid growth has also been focused in narrow
geographies, which in turn affected borrower repayment
incentives and behaviors. This report takes a fresh look at
the state of credit reporting at the base of the pyramid.
The data and analysis for this paper are drawn from
International Finance Corporation (IFC) and Consultative
Group to Assist the Poorest (CGAP) market intelligence on
credit reporting systems. the lessons learned for effective
credit reporting at the base of the pyramid and identifies
key success factors as well as common challenges. |
| format |
Working Paper |
| author |
Lyman, Timothy Lythgoe, Tony Miller, Margaret Reille, Xavier Sankaranarayan, Shalini |
| author_facet |
Lyman, Timothy Lythgoe, Tony Miller, Margaret Reille, Xavier Sankaranarayan, Shalini |
| author_sort |
Lyman, Timothy |
| title |
Credit Reporting at the Base of the Pyramid : Key Issues and Success Factors |
| title_short |
Credit Reporting at the Base of the Pyramid : Key Issues and Success Factors |
| title_full |
Credit Reporting at the Base of the Pyramid : Key Issues and Success Factors |
| title_fullStr |
Credit Reporting at the Base of the Pyramid : Key Issues and Success Factors |
| title_full_unstemmed |
Credit Reporting at the Base of the Pyramid : Key Issues and Success Factors |
| title_sort |
credit reporting at the base of the pyramid : key issues and success factors |
| publisher |
International Finance Corporation and CGAP, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/941861468169469410/Credit-reporting-at-the-base-of-the-pyramid-key-issues-and-success-factors http://hdl.handle.net/10986/26880 |
| _version_ |
1764461175517478912 |
| spelling |
okr-10986-268802021-04-23T14:04:34Z Credit Reporting at the Base of the Pyramid : Key Issues and Success Factors Lyman, Timothy Lythgoe, Tony Miller, Margaret Reille, Xavier Sankaranarayan, Shalini ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO LOANS ACCESSIBILITY ACCURATE INFORMATION AFFORDABILITY ARREARS ASSET QUALITY ASSET VALUES ASSETS AUDITS BANK SUPERVISION BANKING AUTHORITIES BANKING AUTHORITY BANKING MARKETS BANKING SUPERVISION BENEFITS OF CREDIT BORROWER BORROWING CAPACITY BUILDING CENTRAL BANK CENTRAL BANK OF BOSNIA AND HERZEGOVINA CENTRAL REGISTRY COLLATERAL COMMERCIAL BANKING COMMERCIAL BANKS COMPETITIVE MARKETS COMPLIANCE COSTS CONSUMER FINANCE CONSUMER GOODS CONSUMER LENDING CONSUMER LOAN CONSUMER LOANS CONSUMER PROTECTION COOPERATIVES COSTS OF CREDIT CREDIT BUREAU CREDIT BUREAUS CREDIT CARD CREDIT DECISIONS CREDIT DISCIPLINE CREDIT HISTORIES CREDIT HISTORY CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT INSTITUTIONS CREDIT MARKET CREDIT PORTFOLIOS CREDIT PRODUCTS CREDIT PROVIDERS CREDIT REGISTRIES CREDIT REGISTRY CREDIT REPORT CREDIT REPORTING CREDIT REPORTING SYSTEM CREDIT REPORTS CREDIT RISK CREDIT SCORES CREDIT SCORING CREDIT-WORTHINESS CREDITORS CREDITS CREDITWORTHINESS CUSTOMER BASE DEBT DEBT COLLECTION DEBT RATIOS DEFAULTS DEMAND FOR CREDIT DONOR SUPPORT DOWN MARKET ECONOMICS EMERGING MARKETS EXCESSIVE INDEBTEDNESS EXISTING CREDIT FAMILIES FINANCE COMPANIES FINANCIAL ACCESS FINANCIAL DISCIPLINE FINANCIAL INNOVATION FINANCIAL LITERACY FINANCIAL NEEDS FINANCIAL PRODUCTS FINANCIAL PROVIDERS FINANCIAL SERVICES FINANCIAL SERVICES PROVIDERS FINANCIAL SYSTEM FOREIGN INVESTMENT FORM OF CREDIT FORMAL CREDIT FORMAL FINANCIAL INSTITUTIONS FRAUD GENDER GENDER EQUALITY GROUP GUARANTEES GROUP LENDING GROUP LOANS HIGH INTEREST RATES HOUSEHOLD INCOME HOUSEHOLDS HOUSING INCOME LEVELS INDEBTEDNESS INDIVIDUAL LOANS INFORMAL LENDERS INFORMAL SECTOR LENDERS INFORMATION INFRASTRUCTURE INFORMATION SHARING INFORMATION SYSTEM INFORMATION TECHNOLOGY INSURANCE INTERNATIONAL CREDIT JURISDICTION LATE PAYMENT LEGAL FRAMEWORK LEGAL RIGHTS LENDER LENDING DECISIONS LENDING INSTITUTIONS LEVEL OF CREDIT LEVELS OF DEBT LOAN AMOUNTS LOAN APPLICATION LOAN CONTRACTS LOAN DATA LOAN OFFICER LOAN PORTFOLIOS LOAN SIZE LOAN UNDERWRITING LOANS FROM BANKS LOCAL MARKET LOW-INCOME BORROWERS LOW-INCOME CONSUMERS LOW-INCOME FAMILIES MANDATE MARKET CONDITIONS MARKET INCENTIVES MARKET LEVEL MARKET PARTICIPANTS MARKET RISKS MARKET SHARE MATURE MARKETS MATURITY MFI MICROBORROWERS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MONEYLENDERS NATURAL DISASTERS NEW CREDIT NONPERFORMING LOANS OFFERINGS OUTREACH OUTSTANDING ASSET OUTSTANDING LOAN PEER REVIEW POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO PORTFOLIO ANALYSIS POTENTIAL BORROWER PRIVATE CREDIT PRIVATE CREDIT BUREAU PRODUCTIVITY PRUDENTIAL REGULATION PUBLIC CREDIT PUBLIC RECORDS PUBLIC REGISTRY RECORD KEEPING REGULATORY AUTHORITIES REGULATORY AUTHORITY REGULATORY BARRIERS REGULATORY CONSTRAINTS REGULATORY FRAMEWORK REPAYMENT REPAYMENT DISCIPLINE REPAYMENT HISTORY REPAYMENT INCENTIVES REPAYMENTS RESERVE RESERVE BANK RESERVE BANK OF INDIA RISK MANAGEMENT RISK MANAGEMENT SYSTEMS RURAL FINANCE SALARIES SAVINGS SOCIAL NETWORKS SOURCES OF FINANCE TELECOMMUNICATIONS TRANSACTION TRANSACTION COSTS TRANSPARENCY TURNOVER VALUABLE ASSET VILLAGE Over the past five years, the microcredit sector has experienced unprecedented growth. The number of borrowers served by microfinance institutions (MFIs) has increased threefold to reach 120 million clients, according to MIX estimates as of December 2009 and by other estimates the number may be as high 190 million (Microcredit Summit Campaign 2011). In large markets, such as Mexico and South Africa, commercial banks and consumer lending companies have expanded their activities to include microfinance for low-income households. Unfortunately, the growth of microcredit is not always sustainable. Some iconic markets, such as India and Bosnia Herzegovina, are experiencing large-scale credit crises, and they are not alone. The deterioration in the quality of MFI loan portfolios can be attributed to several factors. Some fast growing MFIs have outgrown their risk management systems and controls. These weaknesses have often been exacerbated by high staff turnover, leading to a further erosion of credit discipline. Rapid growth has also been focused in narrow geographies, which in turn affected borrower repayment incentives and behaviors. This report takes a fresh look at the state of credit reporting at the base of the pyramid. The data and analysis for this paper are drawn from International Finance Corporation (IFC) and Consultative Group to Assist the Poorest (CGAP) market intelligence on credit reporting systems. the lessons learned for effective credit reporting at the base of the pyramid and identifies key success factors as well as common challenges. 2017-06-05T16:26:49Z 2017-06-05T16:26:49Z 2011-09 Working Paper http://documents.worldbank.org/curated/en/941861468169469410/Credit-reporting-at-the-base-of-the-pyramid-key-issues-and-success-factors http://hdl.handle.net/10986/26880 English en_US FORUM;No. 1 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo International Finance Corporation International Finance Corporation and CGAP, Washington, DC Publications & Research :: Working Paper Publications & Research |