Credit risk in the microfinance industry: The role of gender affinity

This study explores the role played by gender in lending trans-actions and specifically its effects on the loan portfolio credit risk of microfinance institutions (MFIs). Using a multicountry data set of developing countries, where MFIs mainly operate, the analy-sis shows that a higher proportion of...

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Bibliographic Details
Authors: Blanco Oliver, Antonio Jesús, Reguera Alvarado, Nuria, Veronesi, Gianluca
Format: article
Status:Versión aceptada para publicación
Publication Date:2021
Country:España
Institution:Universidad de Sevilla (US)
Repository:idUS. Depósito de Investigación de la Universidad de Sevilla
OAI Identifier:oai:idus.us.es:11441/116573
Online Access:https://hdl.handle.net/11441/116573
https://doi.org/10.1080/00472778.2020.1844487
Access Level:Open access
Keyword:Microfinance
Gender
Entrepreneurship
Description
Summary:This study explores the role played by gender in lending trans-actions and specifically its effects on the loan portfolio credit risk of microfinance institutions (MFIs). Using a multicountry data set of developing countries, where MFIs mainly operate, the analy-sis shows that a higher proportion of female loan officers increases the loan portfolio at risk. Nonetheless, we also find that this positive relationship is negatively mediated by the gender affinity between female loan officers and female bor-rowers. Gender affinity suggests that female loan officers are more likely to lend to female borrowers, and this reduces the default rate of loans offered by MFIs