000			02687cam a22004334a 4500
001			6619
003			The World Bank
006			m d
007			cr cn|||||||||
008			020129s2013 dcu i001 0 eng
024	8		_a10.1596/1813-9450-6619
035			_a(The World Bank)6619
100	1		_aBerg, Claudia
245	1	0	_aMicrofinance and Moneylenders _h[electronic resource] : _bLong-Run Effects of MFIs on Informal Credit Market in Bangladesh / _cBerg, Claudia
260			_aWashington, D.C., _bThe World Bank, _c2013
300			_a1 online resource (38 p.)
520	3		_aUsing two surveys from Bangladesh, this paper provides evidence on the effects of microfinance competition on village moneylender interest rates and households' dependence on informal credit. The views among practitioners diverge sharply: proponents claim that competition of microfinance institutions reduces both the moneylender interest rate and households' reliance on informal credit, while the critics argue the opposite. Taking advantage of recent econometric approaches that address selection on unobservables without imposing standard exclusion restrictions, this paper finds that microfinance competition does not reduce moneylender interest rates, thus partially repudiating the proponents. The effects are heterogeneous; there is no perceptible effect at low levels of coverage, but when microfinance coverage is high enough, the moneylender interest rate increases significantly. In contrast, households' dependence on informal credit tends to go down after they become a member of a microfinance institution, which contradicts part of the critic's argument. The evidence is consistent with a model where microfinance institutions draw away better borrowers from the moneylender, and fixed costs are important in informal lending.
650		4	_aAccess to Finance
650		4	_aAgriculture
650		4	_aBanks & Banking Reform
650		4	_aDebt Markets
650		4	_aEconomic Theory & Research
650		4	_aEmerging Markets
650		4	_aIdentification Through Heteroskedasticity
650		4	_aInformal Borrowing
650		4	_aInterest Rates
650		4	_aLong-Run Effects
650		4	_aMicrocredit
650		4	_aMicrofinance
650		4	_aMoneylenders
650		4	_aRural Development
651		4	_aBangladesh
700	1		_aBerg, Claudia
700	1		_aEmran, M. Shahe
700	1		_aShilpi, Forhad
776	1	8	_aPrint version: _iBerg, Claudia _tMicrofinance and Moneylenders. _dWashington, D.C. : The World Bank, 2013
830		0	_aPolicy research working papers.
830		0	_aWorld Bank e-Library.
856	4	0	_uhttp://elibrary.worldbank.org/doi/book/10.1596/1813-9450-6619
999			_c25777 _d25777