Dynamic incentives, where incentives to repay are generated by granting access to future loans, is one of the methodologies used by microfinance institutions (MFIs). In this paper, I present a model of dynamic incentives where lenders are uncertain over how much borrowers value future loans. Loan terms are determined endogenously, and loans become more favorable as the probability of default be...

Abstract: At the macro level, the time-series of the amounts of loans granted (a flow) and repaid (a flow) to the banking system in each period are not available. The information on these flows is important in many analyses, such as the impact of the bank lending on investment outlays. However, one can get the information concerning the structure of loans (a stock variable) regarding their dura...

We present a banking model with imperfect competition in which borrowers’ access to credit is improved when banks are able to transfer credit risks. However, the market for credit risk transfer (CRT) works smoothly only if the quality of loans is public information. If the quality of loans is private information, banks have an incentive to grant unprofitable loans in order to transfer them to o...

Purpose: The aim of this paper is to unveil the reasons that have led to the recent deterioration of the economic situation of pharmacies in Portugal, using as the metric of analysis the characteristics in the management of these units. Methodology: The paper opted for a comparison of economic indicators adopted by pharmacies which hold the official SME Excellence distinction and the pharmacies...

OBJECTIVES To investigate the safety and efficacy of complementary treatment of breast cancer patients with the standardized mistletoe extract (sME) HELIXOR in routine practice during aftercare through a multicenter comparative epidemiological cohort study with 53 randomly selected hospitals/practices representatively distributed in Germany, including oncologists, gynaecologists and general pra...

The "subsequent memory paradigm" is an analysis tool to identify brain activity elicited during episodic encoding that is associated with successful subsequent retrieval. Two commonly observed event-related potential "subsequent memory effects" (SMEs) are the parietal SME in the P300 time window and the frontal slow wave SME, but to date a clear characterization of the circumstances under which...

A student loans scheme (SLS) came into effect recently in Thailand, covering both upper secondary and tertiary level schooling. The central objective of the scheme is social — to increase access of poor students and to prevent student dropout. The loans scheme is highly subsidized owing to the extremely favorable repayment conditions, which in turn calls into question the longer-term financial ...

T he topic of the “credit crunch” received considerable attention during the early 1990s. As a result, several initiatives aimed at eliminating regulatory disincentives to lending were put in place. For example, documentation requirements recently were reduced to the legal minimum for loans to small and medium-sized businesses. Also, examiners and bankers were encouraged to emphasize the charac...

Someone once observed that every decade the real estate industry invents a new vehicle for wealth transfer between the inventors and their investors. During my career we have seen this drama play out many times. New wrinkles in capital markets often lead to disheveled portfolios. In the mid 1970s, major banks seized on the mortgage real estate investment trust (REIT) as a vehicle to make loans ...

one of the main challenges facing the agriculture bank of iran regarding lending loans is the high probability of default by farmers. several factors could be involved in this issue and should be considered in order to control and reduce the risk in the failure of repayment. this study aimed to examine the factors affecting the repayment performance of agricultural loans in the city of maragheh...