PUBLICATIONS
The AGDI has published substantially in fulfillment of its mission statement of contributing to knowledge towards African development:
IDEAS
http://ideas.repec.org/d/agdiycm.html
ECONSTOR
https://www.econstor.eu/dspace/escollectionhome/10419/123513
Publication List
2018 |
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| 1. | Aziz, Uchenna Tony‐Okeke & Simplice Asongu Jacinta Nwachukwu Aqsa A C Review of Development Economics, 2018. Abstract | Links | BibTeX | Tags: microbanks, Microfinance @article{Asongu_339, author = {Uchenna Tony‐Okeke & Simplice Asongu A Jacinta C. Nwachukwu Aqsa Aziz}, url = {https://onlinelibrary.wiley.com/doi/abs/10.1111/rode.12402}, doi = {10.1111/rode.12402}, year = {2018}, date = {2018-06-01}, journal = {Review of Development Economics}, abstract = {This study compares the responsiveness of microcredit interest rates with age, scale of lending, and organizational charter. It uses an unbalanced panel of 300 microfinance institutions (MFIs) from 107 developing countries from 2005 to 2015. Three key trends emerge from the results of a 2SLS regression. First, the adoption of formal microbanking practices raises interest rates compared with other forms of microlending. Second, large‐scale lending lowers interest rates only for those MFIs that already hold legal banking status. Third, age of operation in excess of 8 years exerts a negative impact on interest rates, regardless of scale and charter type of MFI. Collectively, our results indicate that policies that incentivize mature MFIs to share their knowledge will be more effective in helping the nascent institutions to overcome their cost disadvantages compared with reforms to transform them into licensed banks. For MFIs that already hold permits to operate as banks, initiatives to increase loan sizes are key strategic pricing decisions, irrespective of the institution's age. This study is original in its differentiation of the impact on interest rates of regulations that promote formal banking principles, credit market extension vis‐à‐vis knowledge sharing between mature and nascent MFIs.}, keywords = {microbanks, Microfinance}, pubstate = {published}, tppubtype = {article} } This study compares the responsiveness of microcredit interest rates with age, scale of lending, and organizational charter. It uses an unbalanced panel of 300 microfinance institutions (MFIs) from 107 developing countries from 2005 to 2015. Three key trends emerge from the results of a 2SLS regression. First, the adoption of formal microbanking practices raises interest rates compared with other forms of microlending. Second, large‐scale lending lowers interest rates only for those MFIs that already hold legal banking status. Third, age of operation in excess of 8 years exerts a negative impact on interest rates, regardless of scale and charter type of MFI. Collectively, our results indicate that policies that incentivize mature MFIs to share their knowledge will be more effective in helping the nascent institutions to overcome their cost disadvantages compared with reforms to transform them into licensed banks. For MFIs that already hold permits to operate as banks, initiatives to increase loan sizes are key strategic pricing decisions, irrespective of the institution's age. This study is original in its differentiation of the impact on interest rates of regulations that promote formal banking principles, credit market extension vis‐à‐vis knowledge sharing between mature and nascent MFIs. |
| 2. | Aziz, Uchenna Tony-Okeke & Simplice Asongu Jacinta Nwachukwu Aqsa A C 2018. Abstract | Links | BibTeX | Tags: microbanks, Microfinance, non-bank financial institutions @unpublished{Asongu_372, author = {Uchenna Tony-Okeke & Simplice Asongu A Jacinta C. Nwachukwu Aqsa Aziz}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Determinants-of-interest-rates-in-microbanks-age-and-scale.pdf}, year = {2018}, date = {2018-02-05}, abstract = {This study compares the responsiveness of microcredit interest rates to age, scale of lending and organisational charter. It uses an unbalanced panel of 300 MFIs from 107 developing countries from 2005 to 2015. Three key trends emerge from the results of a 2SLS regression. First, the adoption of formal microbanking practices raises interest rates compared with other forms of microlending. Second, large scale lending lowers interest rates only for those MFIs that already hold legal banking status. Third, age of operation in excess of eight years exerts a negative impact on interest rates, regardless of scale and charter type of MFI. Collectively, our results indicate that policies which incentivise mature MFIs to share their knowledge will be more effective in helping the nascent institutions to overcome their cost disadvantages compared with reforms to transform them into licensed banks. For MFIs which already hold permits to operate as banks, initiatives to increase loan sizes are key strategic pricing decisions, irrespective of the institution’s age. This study is original in its differentiation of the impact on interest rates of regulations which promote formal banking principles, credit market extension vis-à-vis knowledge sharing between mature and nascent MFIs.}, keywords = {microbanks, Microfinance, non-bank financial institutions}, pubstate = {published}, tppubtype = {unpublished} } This study compares the responsiveness of microcredit interest rates to age, scale of lending and organisational charter. It uses an unbalanced panel of 300 MFIs from 107 developing countries from 2005 to 2015. Three key trends emerge from the results of a 2SLS regression. First, the adoption of formal microbanking practices raises interest rates compared with other forms of microlending. Second, large scale lending lowers interest rates only for those MFIs that already hold legal banking status. Third, age of operation in excess of eight years exerts a negative impact on interest rates, regardless of scale and charter type of MFI. Collectively, our results indicate that policies which incentivise mature MFIs to share their knowledge will be more effective in helping the nascent institutions to overcome their cost disadvantages compared with reforms to transform them into licensed banks. For MFIs which already hold permits to operate as banks, initiatives to increase loan sizes are key strategic pricing decisions, irrespective of the institution’s age. This study is original in its differentiation of the impact on interest rates of regulations which promote formal banking principles, credit market extension vis-à-vis knowledge sharing between mature and nascent MFIs. |
2015 |
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| 3. | Nwachukwu, Simplice Asongu Jacinta A C The Determinants of Interest Rates in Microbanks: Age and Scale 2015. Abstract | Links | BibTeX | Tags: age, Developing countries, economies of scale, interest rates, microbanks, Microfinance, non-bank financial institutions @workingpaper{Nwachukwu2015b, title = {The Determinants of Interest Rates in Microbanks: Age and Scale}, author = {Simplice Asongu A Jacinta C. Nwachukwu}, editor = {African 2015 Governance and Development Institute WP/15/004}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/The-Determinants-of-Interest-Rates-in-Microbanks.pdf}, year = {2015}, date = {2015-02-01}, abstract = {This study investigates the legitimacy of the relatively high interest rates charged by those microfinance institutions (MFIs) which have been transformed into regulated commercial banks using information garnered from a panel of 1232 MFIs from 107 developing countries. Results show that formally regulated micro banks have significantly higher average portfolio yields than their unregulated counterparts. By contrast, large-scale MFIs with more than eight years of experience have succeeded in lowering interest rates, but only up to a certain cut-off point. The implication is that policies which help nascent small-scale MFIs to overcome their cost disadvantages form a more effective pricing strategy than do initiatives to transform them into regulated institutions.}, keywords = {age, Developing countries, economies of scale, interest rates, microbanks, Microfinance, non-bank financial institutions}, pubstate = {published}, tppubtype = {workingpaper} } This study investigates the legitimacy of the relatively high interest rates charged by those microfinance institutions (MFIs) which have been transformed into regulated commercial banks using information garnered from a panel of 1232 MFIs from 107 developing countries. Results show that formally regulated micro banks have significantly higher average portfolio yields than their unregulated counterparts. By contrast, large-scale MFIs with more than eight years of experience have succeeded in lowering interest rates, but only up to a certain cut-off point. The implication is that policies which help nascent small-scale MFIs to overcome their cost disadvantages form a more effective pricing strategy than do initiatives to transform them into regulated institutions. |