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Lending Institutions (lending + institution)

Distribution by Scientific Domains

Humanities and Social Sciences	50%
Business, Economics, Finance and Accounting	50%

Selected Abstracts

Small,Scale Entrepreneurship and Access to Capital in Peripheral Locations: An Empirical Analysis

GROWTH AND CHANGE, Issue 2 2002
Daniel Felsenstein
This paper presents an analysis of a public assistance program for small,scale entrepreneurship in peripheral areas. Public assistance compensates for market inefficiencies where the decision rules of financial institutions discriminate against otherwise viable small firms in capital markets. Lending institutions perceive high risk in providing debt capital when little information is present. Using empirical data from Israel, the determinants of this risk are estimated and the role of location in creating this information asymmetry is stressed. These results empirically establish that (1) location matters in determining the risk profile of the firm, (2) locationally targeted programs can reduce the information asymmetries that make peripheral firms unattractive to lenders, and (3) these programs can also generate positive welfare effects. Finally, there is speculation on the potential role of ICT (information and communications technology) in increasing the visibility of small firms in remote locations and creating a more symmetrical flow of information. [source]

Key Factors of Joint-Liability Loan Contracts: An Empirical Analysis

KYKLOS INTERNATIONAL REVIEW OF SOCIAL SCIENCES, Issue 2 2005
Alexander S. Kritikos
Summary This paper provides an empirical analysis of joint-liability micro-lending contracts. Using our data set, we examine the efficacy of various incentives set by this contract such as joint-liability between groups of borrowers or group access to future and to larger loans. As proposed by theory, we find that joint liability induces a group formation of low risk borrowers. After the loan disbursement, the incentive system leads to peer monitoring, peer support and peer pressure between the borrowers, thus helping the lending institution to address the moral hazard and enforcement problem. This paper also demonstrates that the mechanism realizes repayment rates of nearly 100% if the loan officers fulfill their complementary duties in the screening and enforcement process. Finally, we make clear that dynamic incentives, in contrast to theory, have to be restricted if the two long-term problems of the joint-liability approach, i.e. its mismatching problem and the domino effect, are to be tackled notably. [source]

On Lending to Small Firms

JOURNAL OF SMALL BUSINESS MANAGEMENT, Issue 1 2007
Elijah Brewer III
Lending to small firms is difficult because of the problems of information asymmetry. Innovative ways to address these problems have the potential to increase credit availability to these firms. The papers in this section provide a discussion of two different innovations in small business financing: increased usage of credit scoring technology and the introduction of microfinance lending institutions. Though these two approaches make use of different technologies, they provide a valuable picture of how lending to small firms is evolving over time. [source]

MOSAICS OF MAYA LIVELIHOODS: READJUSTING TO GLOBAL AND LOCAL FOOD CRISES

ANNALS OF ANTHROPOLOGICAL PRACTICE, Issue 1 2009
Rebecca K. Zarger
The particularities of how residents in Southern Belize encounter the vagaries of what is commonly referred to as a "global food crisis" (between 2006 and 2008) are explored in this paper. Belize, like many other nation states around the globe, has been structurally (and sequentially) "readjusted" by transnational lending institutions over the last several decades. Cyclical shifts in agricultural practices have taken place in many Maya communities in Southern Belize in the last decade, partly in response to migration, a severe hurricane, land tenure conflicts, and within the last year, skyrocketing staple prices and food scarcity. The costs of basic staples such as corn, wheat, and rice have nearly doubled, in parallel with much of the rest of the globe during the same time frame. Shifts in subsistence strategies have significant implications for the power and politics of land use, access, and mobility. Furthermore, they reflect centuries-old ways of adjusting to changing circumstances in global markets and colonial and postcolonial realities. I conclude by emphasizing the importance of incorporating political and historical ecologies of land use and food production when considering the local impacts of global food crises. [source]