This paper studies whether microfinance rating agencies were able to impose market discipline on microfinance institutions (MFIs) during the period 1998-2002. Results indicate that not all rating agencies had equal impact. While some rating agencies were able to promote better sustainability,...

Moral hazard is widely reported as a problem in credit and insurance markets, mainly arising from information asymmetry. Although theorists have attempted to explain the success of Joint Liability Lending (JLL) schemes in mitigating moral hazard, empirical studies are rare. This paper...

The microfinance industry in Vietnam, particularly those sponsored by nongovernment organisations (NGOs), has experienced rapid expansion in recent years. Yet in spite of this growth, an analysis of their effectiveness has been lacking. In a bid to help address this shortcoming, this paper...

Farmers do not often change from their house bank to another bank, even if the competing banks offer better conditions. This “reluctance to switch” can be explained, on the one hand, by the transaction costs resulting from such a change of business relation. On the other hand, it may be the...

Financial intermediaries [FIs] in developing and emerging economies are poorly equipped to manage natural disasters. These events create losses for FIs, eroding capital reserves and compromising their ability to lend. Portfolio-level insurance against disasters can improve FI management of these...

Point forecasts are a common method to classify uncertain future outcomes. In the option price literature the concept of implied volatility is well known. This concept is used to get a forward looking indicator about the future volatility. Nowadays market expectations can be extracted in...

Farm-level diversification involves adding income-generating activities at the farm household level, including livestock, local non-farm and off-farm pursuits undertaken by farm people. The objective of this paper is to consider questions arising from an apparent inconsistency. In this respect,...