How Does Competition Affect thePerformance of MFIs? Evidence from Bangladesh

Khandker, Shahidur R. ; Koolwal, Gayatri B. ; Badruddoza, Syed

World Bank, Washington, D.C.

关键词: ACCESS TO MARKETS;    ACCOUNTING;    ADVERSE SELECTION;    AGRICULTURAL CREDIT;    ASYMMETRIC INFORMATION;   

DOI  :  10.1596/1813-9450-6408
RP-ID  :  WPS6408

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Over the past 20 years, Bangladesh haswitnessed strong competition among microfinanceinstitutions. Using program-level panel data from 2005-2010,this paper studies the microfinance institutions'recent competitive roles in their pricing of products,targeting strategies and portfolio shifts, as well as theirability to recover loans. The findings do not support theview that newer microfinance institutions are lessrisk-averse in their targeting, or that increased borrowingamong households due to microfinance institution competitionhas lowered recovery rates. There is also a considerableurban-rural distinction; although newer microfinanceinstitutions tend to attract riskier clients in urban areas,the opposite is true in rural areas. Loan recovery rates arealso the highest among the newest microfinance institutionsfor women in rural areas, suggesting that microfinanceinstitutions may offer distinct products in these areas toattract better-risk clients. The portfolio of newermicrofinance institutions also has a greater share oflending for agriculture, and fewer savings products.