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

Year: 2021

Type: article

Abstract: This study explores the role played by gender in lending transactions 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 analysis 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 borrowers. 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.

Source: Journal of Small Business Management

DOI: 10.1080/00472778.2020.1844487

Authors: Antonio Blanco-Oliver, Nuria Reguera-Alvarado, Gianluca Veronesi

Institutions: Universidad de Sevilla, University of Bristol

Language: English

Topic: Microfinance and Financial Inclusion

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Gender equality, Reduced inequalities, Decent work and economic growth

Open Access status: green

OpenAlex ID: W3082862010

FWCI: 7.436

Cites: 86

Cited by: 61

Related to: 10