After the Microfinance Crisis : Assessing the Role of Government-Led Microcredit Alternatives
In light of the recent microfinance crisis in South India, government-run institutions in general, and primary agricultural credit cooperatives in particular, may end up playing a larger role in the provision of financial services for the poor. Usi...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110922144222 http://hdl.handle.net/10986/3570 |
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okr-10986-35702021-04-23T14:02:10Z After the Microfinance Crisis : Assessing the Role of Government-Led Microcredit Alternatives de la Torre, Jordi Giné, Xavier Vishwanath, Tara ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNTING AGRICULTURAL COOPERATIVE AGRICULTURAL CREDIT ASSETS AVAILABILITY OF CREDIT BANK FINANCING BANK POLICY BANKING SYSTEM BANKS BORROWING BRIBE CLAIM COLLATERAL COLLATERAL REQUIREMENTS COLLATERALS COMMERCIAL BANKS CONTRACT ENFORCEMENT COOPERATIVE BANKING CREDIT COOPERATIVE CREDIT COOPERATIVES CREDIT DECISIONS CREDIT INCREASES CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT INSTITUTIONS CREDIT MARKETS CREDIT PROVIDERS CREDIT REGISTRIES CREDIT SOURCE CREDITOR CREDITOR RIGHTS DEBT DEBT OBLIGATIONS DEVELOPING COUNTRIES ECONOMICS ENFORCEMENT OF CREDIT CONTRACTS FARMERS FINANCIAL ACCESS FINANCIAL INSTITUTIONS FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL SERVICES FORGIVENESS FORMAL SOURCES OF CREDIT FULL REPAYMENT GOVERNMENT BANK GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT INVOLVEMENT GOVERNMENT OWNERSHIP GREATER ACCESS GROUP ACCOUNT GUARANTOR HOUSEHOLDS INDEBTEDNESS INFORMAL CREDIT INFORMAL LENDERS INFORMAL LOANS INFORMATION INFRASTRUCTURE INTEREST RATE INTEREST RATE CALCULATION INTERNATIONAL BANK JOINT LIABILITY LEGISLATION LENDING INSTITUTIONS LIENS LOAN LOAN AMOUNT LOAN CHARACTERISTICS LOAN CONTRACT LOAN DECISIONS LOAN FUNDS LOAN LOSSES LOAN RECOVERIES LOAN REPAYMENT LOAN SIZE LOAN SIZES MARKET DISCIPLINE MARKET FAILURES MARKET PARTICIPANTS MATURITY MFI MFIS MICRO FINANCE MICRO FINANCE INSTITUTIONS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MICROLOAN MONEY LENDER MONEY LENDING NEW BUSINESSES OUTSTANDING LOAN PAWN PAWN BROKER POLITICAL ECONOMY PRIVATE BANKS PRIVATE CREDIT PRODUCTIVITY PROPERTY OWNERSHIP PROPERTY RIGHTS RECORD KEEPING RECOVERY RATES REPAYMENT REPAYMENT OF LOAN REPAYMENT PRIORITY REPAYMENT RATES REPAYMENTS RESERVE RESERVE BANK RESERVE BANK OF INDIA RURAL BANK RURAL CREDIT RURAL CREDIT COOPERATIVES SAVINGS SMALL FARMER SMALL FARMERS SOCIAL WELFARE SOURCE OF CREDIT SOURCES OF CREDIT SUPPLY OF CREDIT VILLAGE VILLAGES In light of the recent microfinance crisis in South India, government-run institutions in general, and primary agricultural credit cooperatives in particular, may end up playing a larger role in the provision of financial services for the poor. Using survey data collected in 2007 from three districts in Andhra Pradesh, this paper assesses the performance of 72 primary agricultural credit cooperatives and finds lack of training among the management. In addition, primary agricultural credit cooperatives tend to be used as political instruments and, as a result, borrowers prioritize all debt obligations (microfinance institutions, informal lenders, etc.) before repaying their primary agricultural credit cooperative loans. The authors suggest that if the performance of primary agricultural credit cooperatives does not improve, a larger government role in the supply of credit may undermine the culture of repayment. 2012-03-19T18:04:46Z 2012-03-19T18:04:46Z 2011-09-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110922144222 http://hdl.handle.net/10986/3570 English Policy Research working paper ; no. WPS 5808 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNTING AGRICULTURAL COOPERATIVE AGRICULTURAL CREDIT ASSETS AVAILABILITY OF CREDIT BANK FINANCING BANK POLICY BANKING SYSTEM BANKS BORROWING BRIBE CLAIM COLLATERAL COLLATERAL REQUIREMENTS COLLATERALS COMMERCIAL BANKS CONTRACT ENFORCEMENT COOPERATIVE BANKING CREDIT COOPERATIVE CREDIT COOPERATIVES CREDIT DECISIONS CREDIT INCREASES CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT INSTITUTIONS CREDIT MARKETS CREDIT PROVIDERS CREDIT REGISTRIES CREDIT SOURCE CREDITOR CREDITOR RIGHTS DEBT DEBT OBLIGATIONS DEVELOPING COUNTRIES ECONOMICS ENFORCEMENT OF CREDIT CONTRACTS FARMERS FINANCIAL ACCESS FINANCIAL INSTITUTIONS FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL SERVICES FORGIVENESS FORMAL SOURCES OF CREDIT FULL REPAYMENT GOVERNMENT BANK GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT INVOLVEMENT GOVERNMENT OWNERSHIP GREATER ACCESS GROUP ACCOUNT GUARANTOR HOUSEHOLDS INDEBTEDNESS INFORMAL CREDIT INFORMAL LENDERS INFORMAL LOANS INFORMATION INFRASTRUCTURE INTEREST RATE INTEREST RATE CALCULATION INTERNATIONAL BANK JOINT LIABILITY LEGISLATION LENDING INSTITUTIONS LIENS LOAN LOAN AMOUNT LOAN CHARACTERISTICS LOAN CONTRACT LOAN DECISIONS LOAN FUNDS LOAN LOSSES LOAN RECOVERIES LOAN REPAYMENT LOAN SIZE LOAN SIZES MARKET DISCIPLINE MARKET FAILURES MARKET PARTICIPANTS MATURITY MFI MFIS MICRO FINANCE MICRO FINANCE INSTITUTIONS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MICROLOAN MONEY LENDER MONEY LENDING NEW BUSINESSES OUTSTANDING LOAN PAWN PAWN BROKER POLITICAL ECONOMY PRIVATE BANKS PRIVATE CREDIT PRODUCTIVITY PROPERTY OWNERSHIP PROPERTY RIGHTS RECORD KEEPING RECOVERY RATES REPAYMENT REPAYMENT OF LOAN REPAYMENT PRIORITY REPAYMENT RATES REPAYMENTS RESERVE RESERVE BANK RESERVE BANK OF INDIA RURAL BANK RURAL CREDIT RURAL CREDIT COOPERATIVES SAVINGS SMALL FARMER SMALL FARMERS SOCIAL WELFARE SOURCE OF CREDIT SOURCES OF CREDIT SUPPLY OF CREDIT VILLAGE VILLAGES |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNTING AGRICULTURAL COOPERATIVE AGRICULTURAL CREDIT ASSETS AVAILABILITY OF CREDIT BANK FINANCING BANK POLICY BANKING SYSTEM BANKS BORROWING BRIBE CLAIM COLLATERAL COLLATERAL REQUIREMENTS COLLATERALS COMMERCIAL BANKS CONTRACT ENFORCEMENT COOPERATIVE BANKING CREDIT COOPERATIVE CREDIT COOPERATIVES CREDIT DECISIONS CREDIT INCREASES CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT INSTITUTIONS CREDIT MARKETS CREDIT PROVIDERS CREDIT REGISTRIES CREDIT SOURCE CREDITOR CREDITOR RIGHTS DEBT DEBT OBLIGATIONS DEVELOPING COUNTRIES ECONOMICS ENFORCEMENT OF CREDIT CONTRACTS FARMERS FINANCIAL ACCESS FINANCIAL INSTITUTIONS FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL SERVICES FORGIVENESS FORMAL SOURCES OF CREDIT FULL REPAYMENT GOVERNMENT BANK GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT INVOLVEMENT GOVERNMENT OWNERSHIP GREATER ACCESS GROUP ACCOUNT GUARANTOR HOUSEHOLDS INDEBTEDNESS INFORMAL CREDIT INFORMAL LENDERS INFORMAL LOANS INFORMATION INFRASTRUCTURE INTEREST RATE INTEREST RATE CALCULATION INTERNATIONAL BANK JOINT LIABILITY LEGISLATION LENDING INSTITUTIONS LIENS LOAN LOAN AMOUNT LOAN CHARACTERISTICS LOAN CONTRACT LOAN DECISIONS LOAN FUNDS LOAN LOSSES LOAN RECOVERIES LOAN REPAYMENT LOAN SIZE LOAN SIZES MARKET DISCIPLINE MARKET FAILURES MARKET PARTICIPANTS MATURITY MFI MFIS MICRO FINANCE MICRO FINANCE INSTITUTIONS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MICROLOAN MONEY LENDER MONEY LENDING NEW BUSINESSES OUTSTANDING LOAN PAWN PAWN BROKER POLITICAL ECONOMY PRIVATE BANKS PRIVATE CREDIT PRODUCTIVITY PROPERTY OWNERSHIP PROPERTY RIGHTS RECORD KEEPING RECOVERY RATES REPAYMENT REPAYMENT OF LOAN REPAYMENT PRIORITY REPAYMENT RATES REPAYMENTS RESERVE RESERVE BANK RESERVE BANK OF INDIA RURAL BANK RURAL CREDIT RURAL CREDIT COOPERATIVES SAVINGS SMALL FARMER SMALL FARMERS SOCIAL WELFARE SOURCE OF CREDIT SOURCES OF CREDIT SUPPLY OF CREDIT VILLAGE VILLAGES de la Torre, Jordi Giné, Xavier Vishwanath, Tara After the Microfinance Crisis : Assessing the Role of Government-Led Microcredit Alternatives |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5808 |
| description |
In light of the recent microfinance
crisis in South India, government-run institutions in
general, and primary agricultural credit cooperatives in
particular, may end up playing a larger role in the
provision of financial services for the poor. Using survey
data collected in 2007 from three districts in Andhra
Pradesh, this paper assesses the performance of 72 primary
agricultural credit cooperatives and finds lack of training
among the management. In addition, primary agricultural
credit cooperatives tend to be used as political instruments
and, as a result, borrowers prioritize all debt obligations
(microfinance institutions, informal lenders, etc.) before
repaying their primary agricultural credit cooperative
loans. The authors suggest that if the performance of
primary agricultural credit cooperatives does not improve, a
larger government role in the supply of credit may undermine
the culture of repayment. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
de la Torre, Jordi Giné, Xavier Vishwanath, Tara |
| author_facet |
de la Torre, Jordi Giné, Xavier Vishwanath, Tara |
| author_sort |
de la Torre, Jordi |
| title |
After the Microfinance Crisis : Assessing the Role of Government-Led Microcredit Alternatives |
| title_short |
After the Microfinance Crisis : Assessing the Role of Government-Led Microcredit Alternatives |
| title_full |
After the Microfinance Crisis : Assessing the Role of Government-Led Microcredit Alternatives |
| title_fullStr |
After the Microfinance Crisis : Assessing the Role of Government-Led Microcredit Alternatives |
| title_full_unstemmed |
After the Microfinance Crisis : Assessing the Role of Government-Led Microcredit Alternatives |
| title_sort |
after the microfinance crisis : assessing the role of government-led microcredit alternatives |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110922144222 http://hdl.handle.net/10986/3570 |
| _version_ |
1764387252296744960 |