Gender Biases in Bank Lending: Lessons from Microcredit in France
Anastasia Cozarenco and
ULB Institutional Repository from ULB -- Universite Libre de Bruxelles
The evidence on gender discrimination in lending remains controversial. To capture gender biases in banks’ loan allocations, we observe the impact on the applicants of a microfinance institution (MFI) and exploit the natural experiment of a regulatory change imposing a strict EUR 10,000 loan ceiling on microcredit. Descriptive statistics indicate that the presence of the ceiling is associated both with bank-MFI co-financing and with harsher treatment of female borrowers. To investigate causal links, we develop an econometric approach that addresses the concerns of selection biases, multicollinearity, and endogeneity. Our empirical findings suggest that the change in the MFI’s gender-related attitude was triggered by banks through co-financing. Hence, we speculate that co-financing pushes ceiling-constrained MFIs to import whatever biases in loan granting that the banks are prone to. Overall, this paper stresses that apparently benign regulations such as loan ceilings can significantly harm the women’s empowerment efforts made by MFIs..
Keywords: Bank; France; Gender; Loan ceiling; Microcredit (search for similar items in EconPapers)
Note: SCOPUS: ar.j
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Published in: Journal of business ethics (2018) v.147 nÂ° 3,p.631–650
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Journal Article: Gender Biases in Bank Lending: Lessons from Microcredit in France (2018)
Working Paper: Gender Biases in Bank Lending: Lessons from Microcredit in France (2018)
Working Paper: Gender Biases in Bank Lending: Lessons from Microcredit in France (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/239879
Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/239879
Access Statistics for this paper
More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().