what are the main success factors of microfinance institutions in providing financial services to poor people in a sustainable manner? in this article we try to answer this question. in one hand, we analyze the core compatibility between microeconomics of asymmetric information, transaction cost and risk, and new different operational mechanisms applied by microfinance institutions. on the othe...

This paper develops a theory of trust in lending, and uses it to analyze the potential market segmentation between banks and fintech lenders. Trust enables lenders to have assured access to financing regardless of market conditions, whereas a loss of trust makes this access conditional on market conditions and the perceived incentives of self-interested lenders to make prudent loans. As long as...

This paper develops a parsimonious static model for characterizing financing terms in collateralized lending markets. We characterize the systematic risk exposures for a variety of securities and develop a simple indifference-pricing framework to value the systematic crash risk exposure of the collateral. We then apply Modigliani and Miller’s (1958) Proposition Two (MM) to split the cost of bea...

The issue of retail banking is extremely important and topical. Across the globe, retail lending has been a spectacular innovation in the commercial banking sector in recent years. The growth of retail lending, especially, in emerging economies, is attributable to the rapid advances in information technology, the evolving macroeconomic environment, financial market reform, and several micro-lev...

This paper provides novel evidence on a particular real cost of political interference on banks—preferential lending to politically important sectors crowds out lending to other sectors in the economy. Analyzing staggered state elections in India, I show that politicians influence banks to increase lending to farmers before elections, which crowds out lending to manufacturing firms. These lendi...

Banks may well perform differently in lending to firms according to their funding structure. This paper surveys the relation between Loan volatility and deposit in Iranian banking system. The extent to which bank lending is connected to funding structure is affected by the banks’ characteristics (such as capital structure, profitability, and the measure of non-performing loans). To analyze this...

The paper by Heider and Hoerova (2009) is ambitious. It studies the interaction between secured interbank lending, unsecured interbank lending, and banks’ portfolio choices. It is motivated by a puzzling empirical observation, namely the “decoupling of secured and unsecured lending rates” in the Great Financial Crisis of 2007–09. The observation made by Heider and Hoerova is that on August 9, 2...

background: it is unclear whether knowing of current hiv status is associated with change in injecting behaviors among people who inject drugs (pwid) in iran. the objective of the present study was to determine whether awareness of hiv positive status is associated with a reduction in injecting risk behaviors, after matching for socio-demographic characteristics . methods : five hundred male pw...

Unaccusative verbs like fall are special in that their sole argument is syntactically generated at the object position of the verb rather than at the subject position. Unaccusative verbs are derived by a lexical operation that reduces the agent from transitive verbs. Their insertion into a sentence often involves a syntactic movement from the object to the subject position. To explore the neuro...

Minority and Immigrant Homeownership Experience: Evidence from the 2009 American Housing Survey Using data from the 2009 American Housing Survey and Hazard Model, this paper provides empirical evidence that the homeownership experience during the recent housing boom and housing bust was not homogenous across all groups in the U.S. The recent deterioration of underwriting practices and a boom in...