Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/313589 
Year of Publication: 
2018
Citation: 
[Journal:] Review of Development Finance [ISSN:] 2959-0930 [Volume:] 8 [Issue:] 1 [Year:] 2018 [Pages:] 38-48
Publisher: 
Elsevier, Amsterdam
Abstract: 
Paradoxically, a plethora of empirical evidence in the traditional banking industry claims that smaller loans are associated with higher risk and the exact opposite is true for large loans. In this study we investigate these claims by estimating the relationship between loan sizes and credit risk in the microfinance industry. The sample used for our analysis incorporates over 2000 annual observations, and 632 microfinance institutions drawn from 37 countries of the sub-Saharan African (SSA) region over the period 1995 to 2013. Using the GMM technique, our estimates indicate that credit risk is positively related to loan sizes among microfinance institutions operating in SSA. Our findings have significant implications for the portfolio managers of microfinance institutions operating in SSA, particularly in light of the current wave of mobile money services in many countries.
Subjects: 
Credit risk
Female borrowers
Loan sizes
Microfinance
sub-Saharan Africa
JEL: 
C33
G21
G32
O12
O55
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.