One of the issues contending the rural borrowers, who are composed of small entrepreneurs, fishermen and farmers, is the access to financial services of formal financial institutions. With this fact on hand, this article discusses the issue within the framework of asymmetry of information...

The formal credit market has rationed out small-scale farmers due to asymmetry of information. Hence, interlinking of markets is observed. In this arrangement, traders become lenders to farmers due to informational advantages acquired through the years of transactions with each other. This...

The formal credit market has rationed out small-scale farmers due to asymmetry of information. Hence, interlinking of markets is observed. In this arrangement, traders become lenders to farmers due to informational advantages acquired through the years of transactions with each other. This...

This paper integrates the major results of the various studies on urban informal credit markets (ICMs). While the terms of references cover a wide range of topics, the peculiar characteristics of the Philippine financial system and the limited budget for the study preclude the study from...

In its attempt to contribute to the understanding of the behavior of one segment of the cooperative movement, this paper analyzes the performance of the cooperative credit union (CCU) system in rural areas. While CCU is the most successful of all types of cooperatives, its role in the financial...

What is the magnitude of borrower transaction costs? How does it affect borrower demand for and access to credit? What are the determinants of transaction costs? Is credit rationing through transaction costs relatively more widespread and important when interest rates are restricted than when...

The Philippine monetary and banking policies have gone through several changes. Between the creation of the Central Bank and 1985, cheap credit policies have been maintained. Highly specialized banks are created to serve specific sectors. This has resulted to the shortfall of the financial...

Do guarantee programs lead to additionality in agricultural lending? Do guarantee programs contribute to small loans? Do guarantee programs encourage banks to use their own funds? Do guarantee programs reduce the cost of lending to banks and how cost effective are the guarantee programs? These...

Against the backdrop of rural financial markets, this article documents and describes Philippine rural deposit mobilization in view of the recent government attempts to reduce the urban bias of financial developments. It also examines the factors in rural economy that can contribute to the...

Against the backdrop of rural financial markets, this article documents and describes Philippine rural deposit mobilization in view of the recent government attempts to reduce the urban bias of financial developments. It also examines the factors in rural economy that can contribute to the...