Economics at your fingertips  

Microfinance institutions and the bank lending channel in Asia and Latin America

Sergio Sanfilippo-Azofra, Begoña Torre-Olmo and María Cantero-Saiz

Journal of Asian Economics, 2019, vol. 63, issue C, 19-32

Abstract: The objective of this article is to analyse the effect of the bank lending channel of monetary policy on microfinance institutions (MFIs), which play an important role in the financial systems of many developing countries. Using a sample of 262 microfinance institutions from 18 developing countries from Asia and Latin America for the period 2004 to 2014, we find that microfinance institutions in the aggregate do not alter their loan supply after a monetary policy shift. Indeed, MFIs established as non-governmental or not-for-profit organizations respond in a direction contrary to that expected, lending more under a monetary tightening or less under a monetary expansion. Our results also show relevant differences between Asia and Latin America. MFIs in Asia tend to increase lending under a monetary tightening, but MFIs in Latin America show no change in lending.

Keywords: Monetary policy; Bank lending channel; Microfinance (search for similar items in EconPapers)
JEL-codes: E44 E52 G21 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.asieco.2019.06.001

Access Statistics for this article

Journal of Asian Economics is currently edited by C. Wiemer

More articles in Journal of Asian Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-06-02
Handle: RePEc:eee:asieco:v:63:y:2019:i:c:p:19-32