Microcredit Interest Rates and Their Determinants, 2004-2011
From the beginning of modern microcredit, its most controversial dimension has been the interest rates charged by micro lenders, often referred to as microfinance institutions (MFIs). These rates are higher, often much higher, than normal bank rates, mainly because it inevitably costs more to lend and collect a given amount through thousands of tiny loans than to lend and collect the same amount in a few large loans. Higher administrative costs have to be covered by higher interest rates. Many people worry that poor borrowers are being exploited by excessive interest rates, given that those borrowers have little bargaining power, and that an ever-larger proportion of microcredit is moving into for-profit organizations where higher interest rates could, as the story goes, mean higher returns for the shareholders. Section one looks at the level and trend of micro lenders' interest rates worldwide, and breaks them out among different types of institutions (peer groups). Section two examines the cost of funds that micro lenders borrow to fund their loan portfolio. Section three reports on loan losses, including, worrisome recent developments in two large markets. Section four presents trends in operating expenses, and touches on the closely related issue of loan size. Section five looks at micro lenders' profits, the most controversial component of microcredit interest rates. A reader without time to read the whole paper may wish to skip to section six, which provides a graphic overview of the movement of interest rates and their components over the period and a summary of the main findings. The annex describes our database and methodology, including the reasons for dropping four large microlenders6 from the analysis.
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Biblioteca del Banco Mundial |
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English en_US |
| topic |
ACCESS TO DEPOSIT ACCESS TO FINANCE ACCESS TO SAVINGS ACCOUNTING ACCOUNTING POLICIES ADJUSTMENT ADMINISTRATIVE COSTS AMOUNT OF LOAN APR BAD DEBT BANK CREDIT BANK RATES BANKING AUTHORITIES BARGAINING POWER BORROWER BORROWING COSTS BORROWINGS CAPITAL STRUCTURE CASH FLOWS CENTRAL BANK CLAIM COLLATERAL COLLECTION EFFORTS COMBINATION OF EQUITY COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL DEBT COMMERCIAL LENDING COMMERCIAL LOANS COMPULSORY DEPOSITS CONSUMER PROTECTION CREDIT RISK CREDIT UNION DEBT DEPOSIT DEPOSIT SERVICES DEPOSITORS DISBURSEMENT DIVIDENDS DOUBLE BOTTOM LINE ECONOMIES OF SCALE EMPLOYERS EQUITY INVESTMENT EQUITY INVESTMENTS EXCLUSIONS EXPLOITATION EXTERNAL AUDITORS FEE INCOME FINANCE COMPANIES FINANCIAL AUTHORITIES FINANCIAL DATA FINANCIAL HEALTH FINANCIAL INDICATORS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL PERFORMANCE FINANCIAL PROVIDERS FINANCIAL SELF-SUFFICIENCY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SUSTAINABILITY FIXED ASSETS FORMS OF CREDIT GOVERNMENT SUBSIDIES HIGH INTEREST RATES HOUSEHOLDS ID INFLATION INSURANCE INTEREST COST INTEREST EXPENSE INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATE CAP INTEREST RATE CAPS INTEREST RATE DATA INTEREST RATE DECLINE INTEREST RATE DECLINES INTEREST RATES INTERNATIONAL INVESTMENT INTERNATIONAL MARKETS INVESTING INVESTMENT FUNDS LATE PAYMENT LENDER LENDERS LENDING AGENCIES LEVERAGE LIABILITY LOAN LOAN AMOUNT LOAN BALANCE LOAN CONTRACT LOAN COOPERATIVES LOAN DELINQUENCY LOAN LOSS LOAN LOSS PROVISIONING LOAN LOSSES LOAN OFFICER LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCT LOAN PRODUCTS LOAN SIZE LOAN SIZES MARKET CONDITIONS MARKET DATA MARKET DEVELOPMENTS MFI MFIS MICROBORROWERS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROLOAN MONEY TRANSFERS MONEYLENDERS NET OPERATING INCOME NET PROFIT NET WORTH NOMINAL YIELD NONPERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EFFICIENCY OPERATING EXPENSES OUTREACH OUTSIDE LENDERS OUTSTANDING BALANCE OUTSTANDING LOAN OUTSTANDING LOANS POOR BORROWERS POOR CLIENTS POSTAL SAVINGS PROBABILITY OF DEFAULT PROBLEM LOANS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION REPAYMENT REPAYMENT CRISIS REPAYMENT PERIODS RETURN RETURN ON EQUITY RETURNS RETURNS ON EQUITY RURAL BANK SALARIES SAVINGS BANK SAVINGS SCHEMES SAVINGS SERVICES SHAREHOLDER SHAREHOLDERS SMALL BUSINESS SMALL BUSINESS LOANS SMALL LOAN SMALL LOANS SPECIALIZED BANKS STATE BANK TAX TRANSACTION TRANSACTION COSTS TRANSPARENCY VILLAGE VOLUNTARY DEPOSITS WAGES ACCESS TO DEPOSIT ACCESS TO FINANCE ACCESS TO SAVINGS ACCOUNTING ACCOUNTING POLICIES ADJUSTMENT ADMINISTRATIVE COSTS AMOUNT OF LOAN APR BAD DEBT BANK CREDIT BANK RATES BANKING AUTHORITIES BARGAINING POWER BORROWER BORROWING COSTS BORROWINGS CAPITAL STRUCTURE CASH FLOWS CENTRAL BANK CLAIM COLLATERAL COLLECTION EFFORTS COMBINATION OF EQUITY COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL DEBT COMMERCIAL LENDING COMMERCIAL LOANS COMPULSORY DEPOSITS CONSUMER PROTECTION CREDIT RISK CREDIT UNION DEBT DEPOSIT DEPOSIT SERVICES DEPOSITORS DISBURSEMENT DIVIDENDS DOUBLE BOTTOM LINE ECONOMIES OF SCALE EMPLOYERS EQUITY INVESTMENT EQUITY INVESTMENTS EXCLUSIONS EXPLOITATION EXTERNAL AUDITORS FEE INCOME FINANCE COMPANIES FINANCIAL AUTHORITIES FINANCIAL DATA FINANCIAL HEALTH FINANCIAL INDICATORS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL PERFORMANCE FINANCIAL PROVIDERS FINANCIAL SELF-SUFFICIENCY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SUSTAINABILITY FIXED ASSETS FORMS OF CREDIT GOVERNMENT SUBSIDIES HIGH INTEREST RATES HOUSEHOLDS ID INFLATION INSURANCE INTEREST COST INTEREST EXPENSE INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATE CAP INTEREST RATE CAPS INTEREST RATE DATA INTEREST RATE DECLINE INTEREST RATE DECLINES INTEREST RATES INTERNATIONAL INVESTMENT INTERNATIONAL MARKETS INVESTING INVESTMENT FUNDS LATE PAYMENT LENDER LENDERS LENDING AGENCIES LEVERAGE LIABILITY LOAN LOAN AMOUNT LOAN BALANCE LOAN CONTRACT LOAN COOPERATIVES LOAN DELINQUENCY LOAN LOSS LOAN LOSS PROVISIONING LOAN LOSSES LOAN OFFICER LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCT LOAN PRODUCTS LOAN SIZE LOAN SIZES MARKET CONDITIONS MARKET DATA MARKET DEVELOPMENTS MFI MFIS MICROBORROWERS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROLOAN MONEY TRANSFERS MONEYLENDERS NET OPERATING INCOME NET PROFIT NET WORTH NOMINAL YIELD NONPERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EFFICIENCY OPERATING EXPENSES OUTREACH OUTSIDE LENDERS OUTSTANDING BALANCE OUTSTANDING LOAN OUTSTANDING LOANS POOR BORROWERS POOR CLIENTS POSTAL SAVINGS PROBABILITY OF DEFAULT PROBLEM LOANS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION REPAYMENT REPAYMENT CRISIS REPAYMENT PERIODS RETURN RETURN ON EQUITY RETURNS RETURNS ON EQUITY RURAL BANK SALARIES SAVINGS BANK SAVINGS SCHEMES SAVINGS SERVICES SHAREHOLDER SHAREHOLDERS SMALL BUSINESS SMALL BUSINESS LOANS SMALL LOAN SMALL LOANS SPECIALIZED BANKS STATE BANK TAX TRANSACTION TRANSACTION COSTS TRANSPARENCY VILLAGE VOLUNTARY DEPOSITS WAGES |
| spellingShingle |
ACCESS TO DEPOSIT ACCESS TO FINANCE ACCESS TO SAVINGS ACCOUNTING ACCOUNTING POLICIES ADJUSTMENT ADMINISTRATIVE COSTS AMOUNT OF LOAN APR BAD DEBT BANK CREDIT BANK RATES BANKING AUTHORITIES BARGAINING POWER BORROWER BORROWING COSTS BORROWINGS CAPITAL STRUCTURE CASH FLOWS CENTRAL BANK CLAIM COLLATERAL COLLECTION EFFORTS COMBINATION OF EQUITY COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL DEBT COMMERCIAL LENDING COMMERCIAL LOANS COMPULSORY DEPOSITS CONSUMER PROTECTION CREDIT RISK CREDIT UNION DEBT DEPOSIT DEPOSIT SERVICES DEPOSITORS DISBURSEMENT DIVIDENDS DOUBLE BOTTOM LINE ECONOMIES OF SCALE EMPLOYERS EQUITY INVESTMENT EQUITY INVESTMENTS EXCLUSIONS EXPLOITATION EXTERNAL AUDITORS FEE INCOME FINANCE COMPANIES FINANCIAL AUTHORITIES FINANCIAL DATA FINANCIAL HEALTH FINANCIAL INDICATORS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL PERFORMANCE FINANCIAL PROVIDERS FINANCIAL SELF-SUFFICIENCY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SUSTAINABILITY FIXED ASSETS FORMS OF CREDIT GOVERNMENT SUBSIDIES HIGH INTEREST RATES HOUSEHOLDS ID INFLATION INSURANCE INTEREST COST INTEREST EXPENSE INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATE CAP INTEREST RATE CAPS INTEREST RATE DATA INTEREST RATE DECLINE INTEREST RATE DECLINES INTEREST RATES INTERNATIONAL INVESTMENT INTERNATIONAL MARKETS INVESTING INVESTMENT FUNDS LATE PAYMENT LENDER LENDERS LENDING AGENCIES LEVERAGE LIABILITY LOAN LOAN AMOUNT LOAN BALANCE LOAN CONTRACT LOAN COOPERATIVES LOAN DELINQUENCY LOAN LOSS LOAN LOSS PROVISIONING LOAN LOSSES LOAN OFFICER LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCT LOAN PRODUCTS LOAN SIZE LOAN SIZES MARKET CONDITIONS MARKET DATA MARKET DEVELOPMENTS MFI MFIS MICROBORROWERS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROLOAN MONEY TRANSFERS MONEYLENDERS NET OPERATING INCOME NET PROFIT NET WORTH NOMINAL YIELD NONPERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EFFICIENCY OPERATING EXPENSES OUTREACH OUTSIDE LENDERS OUTSTANDING BALANCE OUTSTANDING LOAN OUTSTANDING LOANS POOR BORROWERS POOR CLIENTS POSTAL SAVINGS PROBABILITY OF DEFAULT PROBLEM LOANS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION REPAYMENT REPAYMENT CRISIS REPAYMENT PERIODS RETURN RETURN ON EQUITY RETURNS RETURNS ON EQUITY RURAL BANK SALARIES SAVINGS BANK SAVINGS SCHEMES SAVINGS SERVICES SHAREHOLDER SHAREHOLDERS SMALL BUSINESS SMALL BUSINESS LOANS SMALL LOAN SMALL LOANS SPECIALIZED BANKS STATE BANK TAX TRANSACTION TRANSACTION COSTS TRANSPARENCY VILLAGE VOLUNTARY DEPOSITS WAGES ACCESS TO DEPOSIT ACCESS TO FINANCE ACCESS TO SAVINGS ACCOUNTING ACCOUNTING POLICIES ADJUSTMENT ADMINISTRATIVE COSTS AMOUNT OF LOAN APR BAD DEBT BANK CREDIT BANK RATES BANKING AUTHORITIES BARGAINING POWER BORROWER BORROWING COSTS BORROWINGS CAPITAL STRUCTURE CASH FLOWS CENTRAL BANK CLAIM COLLATERAL COLLECTION EFFORTS COMBINATION OF EQUITY COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL DEBT COMMERCIAL LENDING COMMERCIAL LOANS COMPULSORY DEPOSITS CONSUMER PROTECTION CREDIT RISK CREDIT UNION DEBT DEPOSIT DEPOSIT SERVICES DEPOSITORS DISBURSEMENT DIVIDENDS DOUBLE BOTTOM LINE ECONOMIES OF SCALE EMPLOYERS EQUITY INVESTMENT EQUITY INVESTMENTS EXCLUSIONS EXPLOITATION EXTERNAL AUDITORS FEE INCOME FINANCE COMPANIES FINANCIAL AUTHORITIES FINANCIAL DATA FINANCIAL HEALTH FINANCIAL INDICATORS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL PERFORMANCE FINANCIAL PROVIDERS FINANCIAL SELF-SUFFICIENCY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SUSTAINABILITY FIXED ASSETS FORMS OF CREDIT GOVERNMENT SUBSIDIES HIGH INTEREST RATES HOUSEHOLDS ID INFLATION INSURANCE INTEREST COST INTEREST EXPENSE INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATE CAP INTEREST RATE CAPS INTEREST RATE DATA INTEREST RATE DECLINE INTEREST RATE DECLINES INTEREST RATES INTERNATIONAL INVESTMENT INTERNATIONAL MARKETS INVESTING INVESTMENT FUNDS LATE PAYMENT LENDER LENDERS LENDING AGENCIES LEVERAGE LIABILITY LOAN LOAN AMOUNT LOAN BALANCE LOAN CONTRACT LOAN COOPERATIVES LOAN DELINQUENCY LOAN LOSS LOAN LOSS PROVISIONING LOAN LOSSES LOAN OFFICER LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCT LOAN PRODUCTS LOAN SIZE LOAN SIZES MARKET CONDITIONS MARKET DATA MARKET DEVELOPMENTS MFI MFIS MICROBORROWERS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROLOAN MONEY TRANSFERS MONEYLENDERS NET OPERATING INCOME NET PROFIT NET WORTH NOMINAL YIELD NONPERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EFFICIENCY OPERATING EXPENSES OUTREACH OUTSIDE LENDERS OUTSTANDING BALANCE OUTSTANDING LOAN OUTSTANDING LOANS POOR BORROWERS POOR CLIENTS POSTAL SAVINGS PROBABILITY OF DEFAULT PROBLEM LOANS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION REPAYMENT REPAYMENT CRISIS REPAYMENT PERIODS RETURN RETURN ON EQUITY RETURNS RETURNS ON EQUITY RURAL BANK SALARIES SAVINGS BANK SAVINGS SCHEMES SAVINGS SERVICES SHAREHOLDER SHAREHOLDERS SMALL BUSINESS SMALL BUSINESS LOANS SMALL LOAN SMALL LOANS SPECIALIZED BANKS STATE BANK TAX TRANSACTION TRANSACTION COSTS TRANSPARENCY VILLAGE VOLUNTARY DEPOSITS WAGES Rosenberg, Richard Gaul, Scott Ford, William Tomilova, Olga Microcredit Interest Rates and Their Determinants, 2004-2011 |
| description |
From the beginning of modern
microcredit, its most controversial dimension has been the
interest rates charged by micro lenders, often referred to
as microfinance institutions (MFIs). These rates are higher,
often much higher, than normal bank rates, mainly because it
inevitably costs more to lend and collect a given amount
through thousands of tiny loans than to lend and collect the
same amount in a few large loans. Higher administrative
costs have to be covered by higher interest rates. Many
people worry that poor borrowers are being exploited by
excessive interest rates, given that those borrowers have
little bargaining power, and that an ever-larger proportion
of microcredit is moving into for-profit organizations where
higher interest rates could, as the story goes, mean higher
returns for the shareholders. Section one looks at the level
and trend of micro lenders' interest rates worldwide,
and breaks them out among different types of institutions
(peer groups). Section two examines the cost of funds that
micro lenders borrow to fund their loan portfolio. Section
three reports on loan losses, including, worrisome recent
developments in two large markets. Section four presents
trends in operating expenses, and touches on the closely
related issue of loan size. Section five looks at micro
lenders' profits, the most controversial component of
microcredit interest rates. A reader without time to read
the whole paper may wish to skip to section six, which
provides a graphic overview of the movement of interest
rates and their components over the period and a summary of
the main findings. The annex describes our database and
methodology, including the reasons for dropping four large
microlenders6 from the analysis. |
| topic_facet |
ACCESS TO DEPOSIT ACCESS TO FINANCE ACCESS TO SAVINGS ACCOUNTING ACCOUNTING POLICIES ADJUSTMENT ADMINISTRATIVE COSTS AMOUNT OF LOAN APR BAD DEBT BANK CREDIT BANK RATES BANKING AUTHORITIES BARGAINING POWER BORROWER BORROWING COSTS BORROWINGS CAPITAL STRUCTURE CASH FLOWS CENTRAL BANK CLAIM COLLATERAL COLLECTION EFFORTS COMBINATION OF EQUITY COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL DEBT COMMERCIAL LENDING COMMERCIAL LOANS COMPULSORY DEPOSITS CONSUMER PROTECTION CREDIT RISK CREDIT UNION DEBT DEPOSIT DEPOSIT SERVICES DEPOSITORS DISBURSEMENT DIVIDENDS DOUBLE BOTTOM LINE ECONOMIES OF SCALE EMPLOYERS EQUITY INVESTMENT EQUITY INVESTMENTS EXCLUSIONS EXPLOITATION EXTERNAL AUDITORS FEE INCOME FINANCE COMPANIES FINANCIAL AUTHORITIES FINANCIAL DATA FINANCIAL HEALTH FINANCIAL INDICATORS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL PERFORMANCE FINANCIAL PROVIDERS FINANCIAL SELF-SUFFICIENCY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SUSTAINABILITY FIXED ASSETS FORMS OF CREDIT GOVERNMENT SUBSIDIES HIGH INTEREST RATES HOUSEHOLDS ID INFLATION INSURANCE INTEREST COST INTEREST EXPENSE INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATE CAP INTEREST RATE CAPS INTEREST RATE DATA INTEREST RATE DECLINE INTEREST RATE DECLINES INTEREST RATES INTERNATIONAL INVESTMENT INTERNATIONAL MARKETS INVESTING INVESTMENT FUNDS LATE PAYMENT LENDER LENDERS LENDING AGENCIES LEVERAGE LIABILITY LOAN LOAN AMOUNT LOAN BALANCE LOAN CONTRACT LOAN COOPERATIVES LOAN DELINQUENCY LOAN LOSS LOAN LOSS PROVISIONING LOAN LOSSES LOAN OFFICER LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCT LOAN PRODUCTS LOAN SIZE LOAN SIZES MARKET CONDITIONS MARKET DATA MARKET DEVELOPMENTS MFI MFIS MICROBORROWERS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROLOAN MONEY TRANSFERS MONEYLENDERS NET OPERATING INCOME NET PROFIT NET WORTH NOMINAL YIELD NONPERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EFFICIENCY OPERATING EXPENSES OUTREACH OUTSIDE LENDERS OUTSTANDING BALANCE OUTSTANDING LOAN OUTSTANDING LOANS POOR BORROWERS POOR CLIENTS POSTAL SAVINGS PROBABILITY OF DEFAULT PROBLEM LOANS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION REPAYMENT REPAYMENT CRISIS REPAYMENT PERIODS RETURN RETURN ON EQUITY RETURNS RETURNS ON EQUITY RURAL BANK SALARIES SAVINGS BANK SAVINGS SCHEMES SAVINGS SERVICES SHAREHOLDER SHAREHOLDERS SMALL BUSINESS SMALL BUSINESS LOANS SMALL LOAN SMALL LOANS SPECIALIZED BANKS STATE BANK TAX TRANSACTION TRANSACTION COSTS TRANSPARENCY VILLAGE VOLUNTARY DEPOSITS WAGES |
| author |
Rosenberg, Richard Gaul, Scott Ford, William Tomilova, Olga |
| author_facet |
Rosenberg, Richard Gaul, Scott Ford, William Tomilova, Olga |
| author_sort |
Rosenberg, Richard |
| title |
Microcredit Interest Rates and Their Determinants, 2004-2011 |
| title_short |
Microcredit Interest Rates and Their Determinants, 2004-2011 |
| title_full |
Microcredit Interest Rates and Their Determinants, 2004-2011 |
| title_fullStr |
Microcredit Interest Rates and Their Determinants, 2004-2011 |
| title_full_unstemmed |
Microcredit Interest Rates and Their Determinants, 2004-2011 |
| title_sort |
microcredit interest rates and their determinants, 2004-2011 |
| publisher |
CGAP, Washington, DC |
| publishDate |
2013-06 |
| url |
http://documents.worldbank.org/curated/en/2013/06/18427787/microcredit-interest-rates-determinants-2004-2011 https://hdl.handle.net/10986/16655 |
| work_keys_str_mv |
AT rosenbergrichard microcreditinterestratesandtheirdeterminants20042011 AT gaulscott microcreditinterestratesandtheirdeterminants20042011 AT fordwilliam microcreditinterestratesandtheirdeterminants20042011 AT tomilovaolga microcreditinterestratesandtheirdeterminants20042011 AT rosenbergrichard lestauxdinteretdumicrocreditetleursfacteursdeterminants20042011 AT gaulscott lestauxdinteretdumicrocreditetleursfacteursdeterminants20042011 AT fordwilliam lestauxdinteretdumicrocreditetleursfacteursdeterminants20042011 AT tomilovaolga lestauxdinteretdumicrocreditetleursfacteursdeterminants20042011 |
| _version_ |
1807156935930150912 |
| spelling |
dig-okr-10986166552024-08-08T14:16:42Z Microcredit Interest Rates and Their Determinants, 2004-2011 Les taux d’intérêt du microcrédit et leurs facteurs déterminants - 2004-2011 Les taux d'interet du microcredit et leurs facteurs determinants (2004-2011) Rosenberg, Richard Gaul, Scott Ford, William Tomilova, Olga ACCESS TO DEPOSIT ACCESS TO FINANCE ACCESS TO SAVINGS ACCOUNTING ACCOUNTING POLICIES ADJUSTMENT ADMINISTRATIVE COSTS AMOUNT OF LOAN APR BAD DEBT BANK CREDIT BANK RATES BANKING AUTHORITIES BARGAINING POWER BORROWER BORROWING COSTS BORROWINGS CAPITAL STRUCTURE CASH FLOWS CENTRAL BANK CLAIM COLLATERAL COLLECTION EFFORTS COMBINATION OF EQUITY COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL DEBT COMMERCIAL LENDING COMMERCIAL LOANS COMPULSORY DEPOSITS CONSUMER PROTECTION CREDIT RISK CREDIT UNION DEBT DEPOSIT DEPOSIT SERVICES DEPOSITORS DISBURSEMENT DIVIDENDS DOUBLE BOTTOM LINE ECONOMIES OF SCALE EMPLOYERS EQUITY INVESTMENT EQUITY INVESTMENTS EXCLUSIONS EXPLOITATION EXTERNAL AUDITORS FEE INCOME FINANCE COMPANIES FINANCIAL AUTHORITIES FINANCIAL DATA FINANCIAL HEALTH FINANCIAL INDICATORS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL PERFORMANCE FINANCIAL PROVIDERS FINANCIAL SELF-SUFFICIENCY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SUSTAINABILITY FIXED ASSETS FORMS OF CREDIT GOVERNMENT SUBSIDIES HIGH INTEREST RATES HOUSEHOLDS ID INFLATION INSURANCE INTEREST COST INTEREST EXPENSE INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATE CAP INTEREST RATE CAPS INTEREST RATE DATA INTEREST RATE DECLINE INTEREST RATE DECLINES INTEREST RATES INTERNATIONAL INVESTMENT INTERNATIONAL MARKETS INVESTING INVESTMENT FUNDS LATE PAYMENT LENDER LENDERS LENDING AGENCIES LEVERAGE LIABILITY LOAN LOAN AMOUNT LOAN BALANCE LOAN CONTRACT LOAN COOPERATIVES LOAN DELINQUENCY LOAN LOSS LOAN LOSS PROVISIONING LOAN LOSSES LOAN OFFICER LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCT LOAN PRODUCTS LOAN SIZE LOAN SIZES MARKET CONDITIONS MARKET DATA MARKET DEVELOPMENTS MFI MFIS MICROBORROWERS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROLOAN MONEY TRANSFERS MONEYLENDERS NET OPERATING INCOME NET PROFIT NET WORTH NOMINAL YIELD NONPERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EFFICIENCY OPERATING EXPENSES OUTREACH OUTSIDE LENDERS OUTSTANDING BALANCE OUTSTANDING LOAN OUTSTANDING LOANS POOR BORROWERS POOR CLIENTS POSTAL SAVINGS PROBABILITY OF DEFAULT PROBLEM LOANS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION REPAYMENT REPAYMENT CRISIS REPAYMENT PERIODS RETURN RETURN ON EQUITY RETURNS RETURNS ON EQUITY RURAL BANK SALARIES SAVINGS BANK SAVINGS SCHEMES SAVINGS SERVICES SHAREHOLDER SHAREHOLDERS SMALL BUSINESS SMALL BUSINESS LOANS SMALL LOAN SMALL LOANS SPECIALIZED BANKS STATE BANK TAX TRANSACTION TRANSACTION COSTS TRANSPARENCY VILLAGE VOLUNTARY DEPOSITS WAGES From the beginning of modern microcredit, its most controversial dimension has been the interest rates charged by micro lenders, often referred to as microfinance institutions (MFIs). These rates are higher, often much higher, than normal bank rates, mainly because it inevitably costs more to lend and collect a given amount through thousands of tiny loans than to lend and collect the same amount in a few large loans. Higher administrative costs have to be covered by higher interest rates. Many people worry that poor borrowers are being exploited by excessive interest rates, given that those borrowers have little bargaining power, and that an ever-larger proportion of microcredit is moving into for-profit organizations where higher interest rates could, as the story goes, mean higher returns for the shareholders. Section one looks at the level and trend of micro lenders' interest rates worldwide, and breaks them out among different types of institutions (peer groups). Section two examines the cost of funds that micro lenders borrow to fund their loan portfolio. Section three reports on loan losses, including, worrisome recent developments in two large markets. Section four presents trends in operating expenses, and touches on the closely related issue of loan size. Section five looks at micro lenders' profits, the most controversial component of microcredit interest rates. A reader without time to read the whole paper may wish to skip to section six, which provides a graphic overview of the movement of interest rates and their components over the period and a summary of the main findings. The annex describes our database and methodology, including the reasons for dropping four large microlenders6 from the analysis. Depuis les débuts du microcrédit moderne, son aspect le plus controversé est celui des taux d’intérêt appliqués par les micro-prêteurs, que l’on appelle souvent institutions de microfinance (IMF). Ces taux sont plus élevés, souvent même beaucoup plus élevés, que les taux bancaires ordinaires car les frais généraux également plus importants engendrés par la pratique du microcrédit doivent être recouvrés. Mais à quel point ? Nombreux sont ceux qui craignent que les emprunteurs pauvres ne soient exploités en étant soumis à des taux d’intérêt excessifs étant donné qu’ils n’ont que peu de pouvoir de négociation. Une autre source d’inquiétude est le fait qu’une proportion croissante du microcrédit est en train de se réorienter vers les organisations à but lucratif où le relèvement des taux d’intérêt pourrait naturellement se traduire par des rendements supérieurs pour les actionnaires. La Section 1 étudie les niveaux et les tendances des taux d’intérêt du microcrédit à travers le monde, en répartissant les données entre différents types d’institutions (groupes de pairs). La Section 2 examine le coût des ressources que les prêteurs doivent emprunter pour financer leur portefeuille de prêts. La Section 4 présente les tendances des charges d’exploitation et aborde la question de la taille du crédit. La Section 5 se penche sur les bénéfices des institutions de microcrédit, la composante la plus controversée quand on parle des taux d’intérêt du microcrédit. La Section 6 donne une synthèse graphique de l’évolution des taux d’intérêt et de leurs composantes sur la période et offre un résumé des principales conclusions. L’Annexe décrit la base de données et la méthodologie, y compris les raisons pour lesquelles quatre micro-prêteurs importants n’ont pas été pris en compte dans l’ analyse. 2014-01-29T00:54:53Z 2014-01-29T00:54:53Z 2013-06 http://documents.worldbank.org/curated/en/2013/06/18427787/microcredit-interest-rates-determinants-2004-2011 https://hdl.handle.net/10986/16655 English en_US Access to Finance Forum;no. 7 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain application/pdf application/pdf text/plain CGAP, Washington, DC |