A Scoring Model of the Risk of Costly Arrears at a Microfinance Lender in Bolivia

Mark Schreiner

Development and Comp Systems from University Library of Munich, Germany

Abstract: Can scoring models help microfinance lenders in poor countries as much as they have helped credit-card lenders in rich countries? I model the probability that loans from a microlender in Bolivia had arrears of 15 days or more. Although arrears in microfinance depend on many factors difficult to include in statistical models, I find that inexpensive data does indeed have some predictive power. In microfinance, computer models will not replace loan officers, but they can flag the highest risks and act as a cross-check on human judgement.

Keywords: Scoring; risk management; credit risk; Bolivia; microfinance (search for similar items in EconPapers)
JEL-codes: O54 O57 (search for similar items in EconPapers)
Date: 2001-09-05
New Economics Papers: this item is included in nep-lam and nep-mfd
Note: Type of Document - Adobe Acrobat 3.0; prepared on Windows 98; to print on Adobe Acrobat 3.0; pages: ; figures: Included in pdf file
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpdc:0109005

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