2024-03-29T04:56:49Z
https://nagoya.repo.nii.ac.jp/oai
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2023-01-27T04:16:05Z
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Microfinance in Ghana : A Comparative Study of Performance of the Formal versus Informal Rural Financial Institutions
OSEI-ASSIBEY, Eric
open access
A growing number of formal commercial banks are increasingly showing interest in financing the vast underserved and untapped market of microenterprises in Ghana. However, the greater majority are still on the fence and are hesitant to venture into microlending. Using field survey data from a wide range of rural financial institutions, we analysed the performance (both in terms of non-performing loans (NPLs) and managers' perception of growth performance) of formal banks, compared to the traditional MFIs, in microlending, emphasizing the incentives and disincentives as well as risk mitigation strategies. The study finds that while the main incentives driving banks into microlending were profitability and changing market conditions, disincentives ranged from a high cost of transaction to a perceived high risk of microentrepreneurs. Further, while asset-based collateral was found not to affect the performance of FIs, we find evidence to support the hypothesis that collateral leads to a reduction of NPLs. However, informal FIs were found to perform better in reducing default rates than the formal FIs. On depth of outreach, whereas FIs with clients dominated by women were more likely to perform better, those located in rural areas were more inclined to have higher NPLs. Finally, while a higher scope of outreach was found to be significant for performance, high lending rates charged by FIs led to higher levels of default rates.
名古屋大学大学院国際開発研究科
2011-03-28
eng
departmental bulletin paper
VoR
https://doi.org/10.18999/forids.40.151
http://hdl.handle.net/2237/14548
https://nagoya.repo.nii.ac.jp/records/12661
10.18999/forids.40.151
2189-9126
1341-3732
国際開発研究フォーラム
Forum of International Development Studies
40
151
174
https://nagoya.repo.nii.ac.jp/record/12661/files/10.pdf
application/pdf
7.0 MB
2018-02-20