Objective repayment performance in Bangladesh and its determinants: How to improve the allocation of loans by MFIs?
نویسنده
چکیده
The aim of this article is to produce a comprehensive analysis of the performance of microfinance institutions (MFIs) in terms of repayment. We use 1629 loan observations to analyze with a probit the determinants of the repayment performance of borrowers of the BRAC, the BRDB and the Grameen Bank. We test for endogeneity of the size and duration of the loan in the determination of repayment and use instrumental variables to correct for it. We then use a comparative analysis of the determinants of the repayment performance and of the loan size to give policy recommendations to improve the allocation of loan by MFIs.
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