EBRD blog European Bank for Reconstruction and Development

Tag: microcredit

Microfinance at the Margin

By Britta Augsburg, Ralph De Haas, Heike Harmgart and Costas Meghir

A substantial part of the world’s population has no or only limited access to formal financial services. Many of the poor depend on informal networks and family ties – which are often less reliable or relatively expensive – and credit rationing may constrain potential entrepreneurs in executing profitable investment projects.Read more

Is it time to write off group loans?

Microfinance institutions across the world are moving from group lending to individual lending. Yet, there is not much rigorous evidence on the borrower impact of both types of microcredit to either substantiate or challenge such a strategic shift. We present some such evidence from a randomised field experiment in Mongolia.