The oliver twists among women microcredit borrowers, intra household decision...Alexander Decker
This document summarizes a study that investigated factors motivating women microcredit borrowers in Ghana to take multiple loans. The study found:
1) Factors impacting the decision to borrow initially were different than those impacting the decision to take multiple loans, though some variables like household size impacted both decisions.
2) Women who relinquished control of loans to spouses or needed spouse's permission were less likely to take multiple loans.
3) Poorer respondents were also less likely to take multiple loans than wealthier counterparts.
4) The conclusion was that intra-household power dynamics in male-dominated households prevented some women from accessing the full benefits of multiple loans.
The rapid ascent of peer to peer and online direct lending models: the impact...James by CrowdProcess
This document summarizes an article from The Capco Institute Journal of Financial Transformation titled "The Rapid Ascent of Peer-to-Peer and Online Direct Lending Models: The Impact on Banking". It discusses the growth of peer-to-peer and online direct lending as alternatives to traditional banking. Key points include:
- P2P lending platforms like Lending Club and Prosper have grown rapidly and now provide over $250 million in loans per month.
- Institutional investors are increasingly investing in the P2P lending asset class for higher yields.
- Online direct lending is a broader category than P2P lending and has significant potential to further develop the alternative lending industry.
- The growth of crowdf
This document summarizes a study investigating the vertical linkages between formal and informal financial institutions in the Philippines. Specifically, it examines how expanding formal credit to informal lenders, like traders and millers, may impact loan terms for borrowers in the informal sector. The study finds that the effects depend on the nature of competition between informal lenders. If lenders cooperate strategically through threats of reprisal, then greater access to formal credit could allow lenders to collude and worsen terms for informal borrowers. The document provides context on the Philippine financial system and evidence of existing connections between formal banks and informal lenders like traders. It also presents a theoretical framework to analyze how different market structures, like competition or cooperation, could
Bank innovation - PwC Study on When the Growing Gets Tough: How Retail Banks ...Jeff Grill
As the United States emerges from the financial crisis, retail banks are striving to outperform their competitors while grappling with unprecedented regulatory challenges and shifts in consumer behavior. For more information see http://www.pwc.com/us/en/financial-services/publications/viewpoints/viewpoint-when-the-growing-gets-tough.jhtml
Shifters of participation in micro credit and credit in general in pakistanAlexander Decker
This study examines the factors influencing participation in microcredit programs and credit markets more broadly in Faisalabad, Pakistan. The study uses a binary logit model to analyze data collected from 85 microcredit borrowers and 100 non-borrowers. The results indicate that higher average propensity to consume, larger family size, and higher levels of education are positively associated with participation in credit markets. However, having more earners in the family is negatively related to participation. The study aims to identify determinants of credit access to inform policy recommendations for enhancing small traders' access to financing.
his paper critically reviews proposals for banks and moneylenders to link together in disbursing credit to rural areas of developing countries.www.indiamicrofinance.com
The Economics and Regulation of Network Branded Prepaid CardsVivastream
This document summarizes a working paper about the economics and regulation of network branded prepaid cards. It provides background on the growth of prepaid cards and their importance for the unbanked population. Regulations after the 2008 financial crisis increased costs for banks and reduced access to debit/credit cards, fueling demand for prepaid cards. The paper will examine the prepaid card market and debate around potential new regulations, noting the market appears competitive but some regulations could promote competition and consumer welfare.
The oliver twists among women microcredit borrowers, intra household decision...Alexander Decker
This document summarizes a study that investigated factors motivating women microcredit borrowers in Ghana to take multiple loans. The study found:
1) Factors impacting the decision to borrow initially were different than those impacting the decision to take multiple loans, though some variables like household size impacted both decisions.
2) Women who relinquished control of loans to spouses or needed spouse's permission were less likely to take multiple loans.
3) Poorer respondents were also less likely to take multiple loans than wealthier counterparts.
4) The conclusion was that intra-household power dynamics in male-dominated households prevented some women from accessing the full benefits of multiple loans.
The rapid ascent of peer to peer and online direct lending models: the impact...James by CrowdProcess
This document summarizes an article from The Capco Institute Journal of Financial Transformation titled "The Rapid Ascent of Peer-to-Peer and Online Direct Lending Models: The Impact on Banking". It discusses the growth of peer-to-peer and online direct lending as alternatives to traditional banking. Key points include:
- P2P lending platforms like Lending Club and Prosper have grown rapidly and now provide over $250 million in loans per month.
- Institutional investors are increasingly investing in the P2P lending asset class for higher yields.
- Online direct lending is a broader category than P2P lending and has significant potential to further develop the alternative lending industry.
- The growth of crowdf
This document summarizes a study investigating the vertical linkages between formal and informal financial institutions in the Philippines. Specifically, it examines how expanding formal credit to informal lenders, like traders and millers, may impact loan terms for borrowers in the informal sector. The study finds that the effects depend on the nature of competition between informal lenders. If lenders cooperate strategically through threats of reprisal, then greater access to formal credit could allow lenders to collude and worsen terms for informal borrowers. The document provides context on the Philippine financial system and evidence of existing connections between formal banks and informal lenders like traders. It also presents a theoretical framework to analyze how different market structures, like competition or cooperation, could
Bank innovation - PwC Study on When the Growing Gets Tough: How Retail Banks ...Jeff Grill
As the United States emerges from the financial crisis, retail banks are striving to outperform their competitors while grappling with unprecedented regulatory challenges and shifts in consumer behavior. For more information see http://www.pwc.com/us/en/financial-services/publications/viewpoints/viewpoint-when-the-growing-gets-tough.jhtml
Shifters of participation in micro credit and credit in general in pakistanAlexander Decker
This study examines the factors influencing participation in microcredit programs and credit markets more broadly in Faisalabad, Pakistan. The study uses a binary logit model to analyze data collected from 85 microcredit borrowers and 100 non-borrowers. The results indicate that higher average propensity to consume, larger family size, and higher levels of education are positively associated with participation in credit markets. However, having more earners in the family is negatively related to participation. The study aims to identify determinants of credit access to inform policy recommendations for enhancing small traders' access to financing.
his paper critically reviews proposals for banks and moneylenders to link together in disbursing credit to rural areas of developing countries.www.indiamicrofinance.com
The Economics and Regulation of Network Branded Prepaid CardsVivastream
This document summarizes a working paper about the economics and regulation of network branded prepaid cards. It provides background on the growth of prepaid cards and their importance for the unbanked population. Regulations after the 2008 financial crisis increased costs for banks and reduced access to debit/credit cards, fueling demand for prepaid cards. The paper will examine the prepaid card market and debate around potential new regulations, noting the market appears competitive but some regulations could promote competition and consumer welfare.
The effect of financial literacy on payday loan usage with abstractKurt Kunzler
This study examines the relationship between financial literacy and payday loan usage. The author conducted a survey measuring individuals' financial literacy and payday loan usage. Results showed that higher financial literacy, as measured by correctly answering questions about interest, loans, and payments, was associated with lower likelihood of using payday loans. This suggests that improving financial literacy through education may help reduce reliance on expensive payday loans and help people make better financial decisions. The study provides preliminary evidence for the relationship between financial literacy and payday loan usage, though the small sample size limits definitive conclusions.
Structural and relational influences on credit availability to small and mic...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
An evaluation of financing and development of small and medium enterprises in...Alexander Decker
This document summarizes a study that evaluated the relationship between financing and the development of small and medium enterprises (SMEs) in Mombasa County, Kenya. The study found that access to financing is a major factor in the growth and development of SMEs in Mombasa County. However, most SMEs could not survive beyond three years due to a lack of adequate and relevant financing information. The study also found that Mombasa County has a weak enterprise finance information system that does not support the information needs of SMEs. Overall knowledge and awareness of financing options available to SMEs in Mombasa County were determined to be weak based on the findings of this study.
Future of Financial Services - Banking on Innovation - Final PaperJohn Fearn
This document discusses the political barriers to innovative financial services. It argues that while radical change in any sector poses challenges for politicians and regulators, the pace of financial innovation is leaving policymakers behind. It analyzes the political reputations of alternative finance providers, payments services, and high street banks to identify the challenges these firms face in influencing regulation. The document predicts that in the near future, most transactions will be digital, mobile payments will increase, and banking services will fragment across new providers, with 20% of lending from alternative sources. It argues that widespread mobile adoption and the 2007-2009 financial crisis have enabled this radical change by shifting consumer habits and eroding trust in large banks.
This study analyzed the factors affecting loan repayment performances in Microfinance Institutions (MFIs) with
a case study of (Promotion of Rural Initiatives and Development Enterprises) PRIDE Arusha, Tanzania. The
study used both quantitative and qualitative techniques to investigate factors affecting loan repayment
performances. The findings show that clients’ characteristics (age, household size, gender and level of
education), nature of business (business type, business stability and income level) and loan characteristics
(repayment period, repayment mode, and repayment amount) were among the factors that influenced borrowers
in repaying their loans. Lack of business knowledge was another factor mentioned by clients which leads to low
productivity hence failure to have enough fund to repay their loans.
The study further revealed that there was a significant relationship between loan repayment performances with
clients’ businesses challenges, loan diversification to other non-income activities, and other outside factors such
market imperfections, higher interest charges, drought, among others.
The document discusses the lack of regulation of remittance fees charged by money transfer organizations and banks. It details research by ACORN International that found remittance fees to be much higher than reported by the World Bank, often over 20% of the transaction amount. The research found little response from banks to requests to reduce fees and an absence of oversight or regulation of remittance fees by government agencies in sending or receiving countries. ACORN International is now working with legislators to draft laws establishing regulatory oversight of remittance fees to help lower costs for immigrant families.
Improving Americans' Financial Security: The Importance of a CFPB DirectorObama White House
This document discusses the importance of appointing a director to the Consumer Financial Protection Bureau (CFPB). It notes that while the Dodd-Frank Act established strong new consumer protections and the CFPB to enforce them, the CFPB cannot fully exercise its authorities without a director. This leaves gaps in oversight of non-bank financial institutions like payday lenders that interact with tens of millions of American families. Fully empowering the CFPB is critical to protecting consumers from predatory practices and ensuring the financial system supports economic growth and stability.
This document summarizes the key findings of the 2010 report "Financial Access 2010: The State of Financial Inclusion Through the Crisis" published by CGAP and the World Bank. The report finds that:
1) Access to basic deposit services such as savings and payments expanded in most economies from 2008-2009, despite contractions in deposits and loans due to the financial crisis.
2) Physical access points for financial services such as bank branches, ATMs, and POS terminals generally expanded in 2009, although bank branches decreased in economies hardest hit by the crisis.
3) While financial inclusion mandates are widespread among financial regulators, implementation capacity is often limited, especially in developing economies.
Effect of credit risk management practices on lending portfolio among savings...Alexander Decker
This document discusses a study that examined the effects of credit risk management practices on lending portfolios among savings and credit cooperatives (SACCOs) in Nakuru County, Kenya. The study analyzed data on risk identification, analysis, monitoring, evaluation, and mitigation from 59 SACCOs to identify the impact on lending portfolios. The results indicated that all risk management practices had a significant effect on lending portfolios except risk evaluation. Most SACCOs had adopted risk management practices to manage their portfolios. The document provides background on SACCOs in Kenya and discusses the importance of effective credit risk management and loan repayment for SACCO sustainability.
Arizona small businesses want loans, but are baffled why they are still so difficult to obtain even after the recession is over. When it comes to Arizona’s banking landscape and how it directly impacts local small businesses, an eBook released today by Horizon Community Bank outlines a few key challenges that are top-of-mind in the industry and why they are happening.
Strategies for Banking the Unbanked: A Global Market OpportunityReportsnReports
This 125-page report examines strategies for providing banking services to the unbanked population globally. It provides case studies of initiatives in the UK, US, Russia, India, Mexico, and Brazil. The report finds that over 2.5 billion adults worldwide are unbanked, and banks are developing innovative distribution channels, product offerings, and risk management models to capture this large untapped market. Reasons to purchase the report include learning about best practices for reaching remote populations and alternative strategies for product offerings, distribution, marketing and risk management for the unbanked.
The world bank policy research working paper _ dr malik khalid mehmood ph_dMalik Khalid Mehmood
This paper examines how donor and non-state actor service provision can potentially undermine or strengthen citizens' legitimating beliefs towards their government. It hypothesizes that service provision by outside actors could weaken citizens' willingness to comply with government if they credit the outside actors rather than the government. However, service provision could also strengthen legitimating beliefs if citizens see the government as essential in coordinating these outside resources. The paper uses Afrobarometer survey data from 19 African countries to assess these competing hypotheses, finding that service provision by outside actors seems to strengthen rather than undermine citizens' relationship with the state.
This summarizes the first publicly available dataset measuring financial inclusion across 148 countries. It finds that 50% of adults worldwide have a bank account, but account penetration varies significantly between high-income and developing countries. Within countries, wealthier adults make greater use of formal financial services. The most common reasons for being unbanked are lack of money and banks being too expensive or far away. Most saving and borrowing in developing countries is done informally.
The document summarizes trends in the use of financial services globally from 2004-2011 based on data from the IMF. It shows that while the number of deposit accounts with commercial banks has generally increased over this period, growth slowed during the financial crisis of 2008. Low-income countries saw slower growth in accounts than high-income countries. The document also discusses trends in different payment methods and borrowing, finding that non-cash payments are rising but cash remains dominant, and formal borrowing is more common in wealthier nations.
Five Star Bank is launching a new consumer checking account product line and is seeking marketing strategies. The bank operates in Western and Central New York and aims to become the premier community bank in the region. It faces competition from large national banks and smaller regional banks. Most competitors offer checking accounts with monthly fees that can be waived by maintaining a minimum balance. Five Star wants to enhance the customer experience by offering banking services through multiple convenient access channels.
Big Ideas for Small Business: Microcredit Supply and Demand AnalysisCleEconomicDevelopment
This document summarizes a study analyzing the supply and demand for microcredit in Cuyahoga County, Ohio. Key findings include a significant decline in small business lending from 2007-2009; an estimated $38 million unmet loan demand gap; and 6 priority zip codes in Cleveland accounting for $25 million of the gap. Stakeholders identified a need and potential demand for microloans to support small businesses and entrepreneurs. Recommendations include establishing a microloan fund with strong underwriting, technical assistance, and partnerships with local economic development organizations.
Students will play a puzzle card game called Puzzle Poker to improve teamwork and communication skills. The game involves students asking yes or no questions to figure out who or what is on their puzzle piece card without looking at their own card. There are two rounds - one with famous duos and one with food pairs. Students have 10 minutes to pair up their cards through questioning classmates. The objectives are for students to help each other distinguish what is on their cards through honest and clear communication.
The document contains 10 puzzles with their solutions. Puzzle 1 involves figuring out a password system by observing people entering a building. Puzzle 2 is about calculating how many people can escape a spaceship before it explodes based on trip times and capacity. Puzzle 3 asks how to determine which of 7 metal bars is gold using a balance scale in the minimum number of weighings.
A usability evaluation framework for b2 c e commerce websitesAlexander Decker
This document presents a framework for evaluating the usability of B2C e-commerce websites. It involves user testing methods like usability testing and interviews to identify usability problems in areas like navigation, design, purchasing processes, and customer service. The framework specifies goals for the evaluation, determines which website aspects to evaluate, and identifies target users. It then describes collecting data through user testing and analyzing the results to identify usability problems and suggest improvements.
The effect of financial literacy on payday loan usage with abstractKurt Kunzler
This study examines the relationship between financial literacy and payday loan usage. The author conducted a survey measuring individuals' financial literacy and payday loan usage. Results showed that higher financial literacy, as measured by correctly answering questions about interest, loans, and payments, was associated with lower likelihood of using payday loans. This suggests that improving financial literacy through education may help reduce reliance on expensive payday loans and help people make better financial decisions. The study provides preliminary evidence for the relationship between financial literacy and payday loan usage, though the small sample size limits definitive conclusions.
Structural and relational influences on credit availability to small and mic...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
An evaluation of financing and development of small and medium enterprises in...Alexander Decker
This document summarizes a study that evaluated the relationship between financing and the development of small and medium enterprises (SMEs) in Mombasa County, Kenya. The study found that access to financing is a major factor in the growth and development of SMEs in Mombasa County. However, most SMEs could not survive beyond three years due to a lack of adequate and relevant financing information. The study also found that Mombasa County has a weak enterprise finance information system that does not support the information needs of SMEs. Overall knowledge and awareness of financing options available to SMEs in Mombasa County were determined to be weak based on the findings of this study.
Future of Financial Services - Banking on Innovation - Final PaperJohn Fearn
This document discusses the political barriers to innovative financial services. It argues that while radical change in any sector poses challenges for politicians and regulators, the pace of financial innovation is leaving policymakers behind. It analyzes the political reputations of alternative finance providers, payments services, and high street banks to identify the challenges these firms face in influencing regulation. The document predicts that in the near future, most transactions will be digital, mobile payments will increase, and banking services will fragment across new providers, with 20% of lending from alternative sources. It argues that widespread mobile adoption and the 2007-2009 financial crisis have enabled this radical change by shifting consumer habits and eroding trust in large banks.
This study analyzed the factors affecting loan repayment performances in Microfinance Institutions (MFIs) with
a case study of (Promotion of Rural Initiatives and Development Enterprises) PRIDE Arusha, Tanzania. The
study used both quantitative and qualitative techniques to investigate factors affecting loan repayment
performances. The findings show that clients’ characteristics (age, household size, gender and level of
education), nature of business (business type, business stability and income level) and loan characteristics
(repayment period, repayment mode, and repayment amount) were among the factors that influenced borrowers
in repaying their loans. Lack of business knowledge was another factor mentioned by clients which leads to low
productivity hence failure to have enough fund to repay their loans.
The study further revealed that there was a significant relationship between loan repayment performances with
clients’ businesses challenges, loan diversification to other non-income activities, and other outside factors such
market imperfections, higher interest charges, drought, among others.
The document discusses the lack of regulation of remittance fees charged by money transfer organizations and banks. It details research by ACORN International that found remittance fees to be much higher than reported by the World Bank, often over 20% of the transaction amount. The research found little response from banks to requests to reduce fees and an absence of oversight or regulation of remittance fees by government agencies in sending or receiving countries. ACORN International is now working with legislators to draft laws establishing regulatory oversight of remittance fees to help lower costs for immigrant families.
Improving Americans' Financial Security: The Importance of a CFPB DirectorObama White House
This document discusses the importance of appointing a director to the Consumer Financial Protection Bureau (CFPB). It notes that while the Dodd-Frank Act established strong new consumer protections and the CFPB to enforce them, the CFPB cannot fully exercise its authorities without a director. This leaves gaps in oversight of non-bank financial institutions like payday lenders that interact with tens of millions of American families. Fully empowering the CFPB is critical to protecting consumers from predatory practices and ensuring the financial system supports economic growth and stability.
This document summarizes the key findings of the 2010 report "Financial Access 2010: The State of Financial Inclusion Through the Crisis" published by CGAP and the World Bank. The report finds that:
1) Access to basic deposit services such as savings and payments expanded in most economies from 2008-2009, despite contractions in deposits and loans due to the financial crisis.
2) Physical access points for financial services such as bank branches, ATMs, and POS terminals generally expanded in 2009, although bank branches decreased in economies hardest hit by the crisis.
3) While financial inclusion mandates are widespread among financial regulators, implementation capacity is often limited, especially in developing economies.
Effect of credit risk management practices on lending portfolio among savings...Alexander Decker
This document discusses a study that examined the effects of credit risk management practices on lending portfolios among savings and credit cooperatives (SACCOs) in Nakuru County, Kenya. The study analyzed data on risk identification, analysis, monitoring, evaluation, and mitigation from 59 SACCOs to identify the impact on lending portfolios. The results indicated that all risk management practices had a significant effect on lending portfolios except risk evaluation. Most SACCOs had adopted risk management practices to manage their portfolios. The document provides background on SACCOs in Kenya and discusses the importance of effective credit risk management and loan repayment for SACCO sustainability.
Arizona small businesses want loans, but are baffled why they are still so difficult to obtain even after the recession is over. When it comes to Arizona’s banking landscape and how it directly impacts local small businesses, an eBook released today by Horizon Community Bank outlines a few key challenges that are top-of-mind in the industry and why they are happening.
Strategies for Banking the Unbanked: A Global Market OpportunityReportsnReports
This 125-page report examines strategies for providing banking services to the unbanked population globally. It provides case studies of initiatives in the UK, US, Russia, India, Mexico, and Brazil. The report finds that over 2.5 billion adults worldwide are unbanked, and banks are developing innovative distribution channels, product offerings, and risk management models to capture this large untapped market. Reasons to purchase the report include learning about best practices for reaching remote populations and alternative strategies for product offerings, distribution, marketing and risk management for the unbanked.
The world bank policy research working paper _ dr malik khalid mehmood ph_dMalik Khalid Mehmood
This paper examines how donor and non-state actor service provision can potentially undermine or strengthen citizens' legitimating beliefs towards their government. It hypothesizes that service provision by outside actors could weaken citizens' willingness to comply with government if they credit the outside actors rather than the government. However, service provision could also strengthen legitimating beliefs if citizens see the government as essential in coordinating these outside resources. The paper uses Afrobarometer survey data from 19 African countries to assess these competing hypotheses, finding that service provision by outside actors seems to strengthen rather than undermine citizens' relationship with the state.
This summarizes the first publicly available dataset measuring financial inclusion across 148 countries. It finds that 50% of adults worldwide have a bank account, but account penetration varies significantly between high-income and developing countries. Within countries, wealthier adults make greater use of formal financial services. The most common reasons for being unbanked are lack of money and banks being too expensive or far away. Most saving and borrowing in developing countries is done informally.
The document summarizes trends in the use of financial services globally from 2004-2011 based on data from the IMF. It shows that while the number of deposit accounts with commercial banks has generally increased over this period, growth slowed during the financial crisis of 2008. Low-income countries saw slower growth in accounts than high-income countries. The document also discusses trends in different payment methods and borrowing, finding that non-cash payments are rising but cash remains dominant, and formal borrowing is more common in wealthier nations.
Five Star Bank is launching a new consumer checking account product line and is seeking marketing strategies. The bank operates in Western and Central New York and aims to become the premier community bank in the region. It faces competition from large national banks and smaller regional banks. Most competitors offer checking accounts with monthly fees that can be waived by maintaining a minimum balance. Five Star wants to enhance the customer experience by offering banking services through multiple convenient access channels.
Big Ideas for Small Business: Microcredit Supply and Demand AnalysisCleEconomicDevelopment
This document summarizes a study analyzing the supply and demand for microcredit in Cuyahoga County, Ohio. Key findings include a significant decline in small business lending from 2007-2009; an estimated $38 million unmet loan demand gap; and 6 priority zip codes in Cleveland accounting for $25 million of the gap. Stakeholders identified a need and potential demand for microloans to support small businesses and entrepreneurs. Recommendations include establishing a microloan fund with strong underwriting, technical assistance, and partnerships with local economic development organizations.
Students will play a puzzle card game called Puzzle Poker to improve teamwork and communication skills. The game involves students asking yes or no questions to figure out who or what is on their puzzle piece card without looking at their own card. There are two rounds - one with famous duos and one with food pairs. Students have 10 minutes to pair up their cards through questioning classmates. The objectives are for students to help each other distinguish what is on their cards through honest and clear communication.
The document contains 10 puzzles with their solutions. Puzzle 1 involves figuring out a password system by observing people entering a building. Puzzle 2 is about calculating how many people can escape a spaceship before it explodes based on trip times and capacity. Puzzle 3 asks how to determine which of 7 metal bars is gold using a balance scale in the minimum number of weighings.
A usability evaluation framework for b2 c e commerce websitesAlexander Decker
This document presents a framework for evaluating the usability of B2C e-commerce websites. It involves user testing methods like usability testing and interviews to identify usability problems in areas like navigation, design, purchasing processes, and customer service. The framework specifies goals for the evaluation, determines which website aspects to evaluate, and identifies target users. It then describes collecting data through user testing and analyzing the results to identify usability problems and suggest improvements.
Abnormalities of hormones and inflammatory cytokines in women affected with p...Alexander Decker
Women with polycystic ovary syndrome (PCOS) have elevated levels of hormones like luteinizing hormone and testosterone, as well as higher levels of insulin and insulin resistance compared to healthy women. They also have increased levels of inflammatory markers like C-reactive protein, interleukin-6, and leptin. This study found these abnormalities in the hormones and inflammatory cytokines of women with PCOS ages 23-40, indicating that hormone imbalances associated with insulin resistance and elevated inflammatory markers may worsen infertility in women with PCOS.
Team Building PowerPoint Slides include topics such as: why teams work, building a team, reasons to create teams, structuring your team, developing effective teams, five intrinsic elements of teams, four stages of team development, team behaviors, team roles, 18 group building behaviors, overcoming common obstacles, responsibilities for team leadership, evaluating team performance, viewing the top teams, how to's and more. Slides can easily be tailored to your specific needs (make handouts, create overheads and use them with an LCD projector) and are available for license. 100+ PowerPoint presentation content slides. Each slide includes slide transitions, clipart and animation. System & Software Requirements: IBM or MAC and PowerPoint 97 or higher. Royalty Free - Use Them Over and Over Again. Once purchased, download instructions will be sent to you via email. (PC and MAC Compatible).
Teamwork involves people working together for a common purpose under shared values. Effective teamwork relies on strong interpersonal skills and open communication. It requires that team members listen to each other, share responsibility for tasks, and fully participate in order to achieve goals. While conflict is inevitable, strategies like frequent communication, agreeing to disagree respectfully, and focusing on shared policies can help minimize and resolve disputes to keep teams functioning well.
This document discusses stress management and provides strategies for coping with stress. It defines stress and outlines its causes such as life events, work, and lifestyle factors. The physical and psychological symptoms of stress are described. The document also explains how the body's stress response system works and covers strategies for managing stress through changing one's thinking, behavior, and lifestyle habits like diet, exercise, and relaxation techniques. Alternative therapies for reducing stress are also mentioned.
Effect of Credit Information Bureau and Appraisal Methods on performance of C...AI Publications
This study intended to identify the effect of credit information bureau and appraisal methods on performance of commercial banks in Mwanza Region. Specifically, the study intended to assess the effect of Credit Reference Bureaus’ information sharing on the credit performance of commercial banks, to assess the effect of the credit scoring appraisal method employed on the performance of commercial banks and to assess the effect of non-performing loans on the performances of Commercial Banks in the Mwanza Region. The study was guided by three theories; the theory of asymmetric information, moral hazard theory and multiple - bank lending model. The study adopted a descriptive research design, sampling 105 respondents randomly and purposefully and collected data through questionnaires. The aim is to establish the effect of credit information bureau and appraisal credit scoring methods on the performance of commercial banks in the Mwanza Region. Results revealed that credit information bureau had a positive, strong effect on the credit performance of commercial banks, and this effect is significant in Mwanza region. Non-performing loans had a positive, weak effect on the credit performance of commercial bank and it was not significant. Finally the credit scoring appraisal approach has a negative, weak effect on commercial bank credit performance. The study concluded that credit information bureau has a significant influence on credit performance of commercial banks and therefore should be used to reduce non-performing loans. The study recommended that banks should continue to use the credit reference bureau’s information-sharing services as it enhances their profitability through the reduction of non-performing loans.
A CRITIQUE ON THE EMPIRICS OF MICROFINANCE WHAT DO WE KNOW BY Niels Hermes A...Cynthia Velynne
This critique analyzes two topics: 1) the effectiveness of joint liability group lending in reducing information asymmetries, and 2) the relationship between microfinance institutions' (MFIs) financial performance and outreach. For the first topic, the critique reviews literature showing that group lending factors like formal rules, self-selection, and strong group leaders help reduce moral hazard and improve repayment rates. For the second topic, the critique finds a positive correlation between MFI profitability and number of active clients served based on a quantitative analysis, suggesting no trade-off between financial sustainability and outreach.
A Critique on the Empirics of Microfinance by Niels Hermes and Robert LensinkCypran Akubude
The piece of work is a critique about an article written by two authors, that is Niels Hermes and Robert Lensink. The work looks at the relevance of microfinance in the developing countries and how it can help alleviate poverty.
This document summarizes the key findings of the Financial Access 2010 report, which analyzes changes in financial access from 2008 to 2009 using survey responses from 142 economies. It finds that while the number of deposit accounts grew 4% on average during the crisis, credit services declined. Physical access to banks expanded slightly through new ATMs and POS terminals. Most regulators have financial inclusion mandates but lack dedicated implementation teams. Consumer protection laws are widespread but enforcement is often limited by capacity. Two-thirds of economies collect some SME finance data but definitions vary, challenging cross-country comparisons.
EFFECTS OF MORTGAGE FINANCING ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANK...paperpublications3
Abstract: Mortgage financing over the years has been a preserve for mortgage financing companies but with time, commercial banks have started engaging in mortgage financing. An efficient housing finance system has significant importance both in meeting the housing needs of individuals and in reinforcing the development it is practiced by banks in Kitale and to figure out there short coming in mortgage financing do affect the performance of banks. The objectives of the study were to establish the effects of mortgage financing on Financial Performance of commercial banks in Kitale. The study had four specific objectives establish effects of repayment period, interest rates, income levels of borrowers and valuation cost on performance of mortgage financing in Trans Nzoia County of financial performance of commercial banks in Kitale. The study adopted descriptive research design which assists to examine the effects between mortgage financing and financial performance of commercial banks. The target population of the study was 16 Commercial Banks as they fulfil all characteristics and legally accepted by the Central Bank of Kenya. A census was applied as the method of systematically acquiring and recording information from the population. Qualitative and quantitative techniques were used to analyzing the data. After receiving questionnaires from the respondents the responses were edited, classified, coded and tabulated to analyze quantitative data using statistical package for social science (SPSS 21). Tables and charts were used for data presentation for easy understanding and analyzes.
Keywords: Repayment period, Interest rate, Mortgage valuation cost and financial performance.
Title: EFFECTS OF MORTGAGE FINANCING ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN TRANSNZOIA COUNTY
Author: Serem, Kipruto, Isaac, Prof. Namusonge, Gregory, Mr. Okwaro Fredrick
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
Working paper 199_-_microcredit_for_the_development_of_the_bottom_of_the_pyra...Dr Lendy Spires
This document summarizes a study that evaluated the impact of microcredit access on residents in Kibera slum in Nairobi, Kenya. The study used non-randomized controlled trials to compare outcomes between a treatment group that received microcredit access and a control group that did not. A baseline survey was conducted before the treatment, and a follow-up survey 18 months later measured impacts on business, household, institutional, and urban sustainability outcomes. The study found small but significant improvements in business and household outcomes, but little evidence of impacts on urban sustainability. A combination of difference-in-differences and propensity score matching techniques was used to estimate treatment effects while addressing selection bias issues.
The Singapore FinTech Consortium - Introduction to Financial Inclusion in Sou...FinTech Consortium
In recent years FinTech, has grown tremendously and is making its presence felt across the globe. The Singapore FinTech Consortium presents our slide deck: Introduction to Financial Inclusion in Southeast Asia to give you a preview of our research in the Southeast Asian landscape.
If you are keen to learn about P2P Lending, please view our slide deck at:
http://www.slideshare.net/SGFinTech/singapore-fin-tech-consortium-intro-to-p2p-lending
If you would like to receive a pdf copy of any of our slide decks, please drop us an email at info@singaporefintech.com and we'll be happy to oblige. For more information about us and our service offerings, please visit our company website at www.singaporefintech.com.
Analysis on Challenges Small Business Face in using the MBanking/Payment Serv...Dr. Amarjeet Singh
Mobile banking services are at the present
increasingly used to accomplish economic transactions by the
business people who would have followed long processes to
complete their transaction deals. Despite the importance of
mobile banking, several studies indicate that the industry still
faces challenges including lack of awareness among the
business parties and customers. Though large populations of
Kenyans have embraced the new technology in most of their
transactions, the contribution of the new technology on small
scale enterprises has received very little attention from the
scholars. The main purpose of this study was to identifying
and rank the challenges faced by the residents as they try to
embrace the mobile banking services. The study adopted a
survey design where data was collected from selected
respondents. The population of the study comprises of 730
small business enterprises. Simple random sampling technique
was used to select 88 small business enterprises based on 95%
confidence level and accepting 5% margin of error as
recommended for most business and social researches.
Primary data was collected from the respondents. Data was
analyzed by using statistical package for social sciences (SPSS)
and it was presented in the form of graphs, tables and charts.
Analysis of the data revealed that the highest challenge faced
by the business owners was the cost of transaction with a
cumulative percentage of 51.3 as compared with other
challenges.
Specialty lending has grown significantly due to new regulations tightening bank lending standards. This has led banks to pull back from high-risk lending, driving clients to digital alternative lenders. These lenders utilize technology like big data and automation to efficiently match borrowers and lenders. Though still small compared to traditional banks, the specialty lending market has grown exponentially and has considerable room for further expansion, representing an opportunity for investors.
Bridging the Small Business Credit Gap Through Innovative Lending by Accion V...Nancy Widjaja
This document discusses how innovative lenders are using new approaches to address the large financing gap facing micro, small, and medium enterprises (MSMEs). It describes how these lenders are innovating in customer acquisition, underwriting, and funding. Some key points include:
- These lenders are using niche marketing, digital/mobile platforms, and partnerships to better understand MSME clients and assess/price risk in a more efficient way than traditional banks.
- They are acquiring customers through tailored products/services delivered quickly via the web, mobile, or by targeting specific industry clusters/markets.
- Underwriting is improved by leveraging deeper knowledge of target sectors/value chains or alternative data sources made possible by
The document examines the determinants of access to bank financing for small and medium enterprises in Sri Lanka. Through a literature review and analysis of survey data, it finds that the education level of entrepreneurs and membership in business associations are associated with greater access to bank financing, while other factors like firm size, age, and financial characteristics are not associated. The findings provide insights for banks, training institutions, and policymakers to improve small businesses' access to financing in Sri Lanka.
The document discusses the future of microfinance in India. It notes that microfinance has expanded rapidly in recent years, with membership in associations growing and loan amounts outstanding increasing significantly from 2001-2004 and 2001-2005 for various microfinance programs and institutions. It also discusses the growing partnership models between banks and MFIs, and innovations in how banks provide funding to MFIs. Going forward, it emphasizes the need for greater financial literacy, product differentiation, and ensuring client empowerment through education on loan terms and conditions.
Effect of Digital Banking on Customer Satisfaction: A case of National Bank o...paperpublications3
Abstract: This study purposed to investigate the effect of digital banking on customer satisfaction case of National Bank of Kenya. The objective that guided the study: To determine the effect of speed of transactions on Customer Satisfaction case of National Bank of Kenya, Bungoma County. The target population for the study was bank customers and banking staff from National Bank in Bungoma County. The study utilized a sample size of 417. Descriptive survey design was undertaken and data was collected using a triangulation of methods including questionnaires, interview schedules and document reviews. Analysis was undertaken with the aid of Statistical Package for Social Sciences where both descriptive and correlation analysis were performed. The findings of the study established that there was a significant relationship between speed of transaction and customers satisfaction, χ2 (6, N=350) = 221.45. The study recommends that there is need by banks to invest more on robust reliable systems to reduce incidents of failed transactions and transactional errors in ATMs.
This document summarizes a study that investigates the relationship between loan sizes and credit risk in the microfinance industry of sub-Saharan Africa. Using data on over 2000 annual observations from 632 microfinance institutions across 37 countries between 1995 and 2013, the study finds that credit risk is positively related to loan sizes. This contrasts with evidence from traditional banking, which typically finds an inverse relationship between loan sizes and risk. The results have implications for microfinance portfolio managers, particularly as mobile money services expand in the region.
Determinants of loan repayment evidence from group owned micro and small ente...Alexander Decker
This study examines factors affecting loan repayment among group-owned micro and small enterprises (MSEs) in Mekelle, Ethiopia. The researcher conducted surveys of 62 MSEs financed by a microfinance institution, collecting data on loan repayment performance and borrower characteristics. A binary logistic regression model was used to analyze how sector of operation, group size, group initiation process, and group composition influenced the likelihood of repayment. The results found that sector and initiation process had statistically significant effects, with businesses in services more likely to repay than construction or manufacturing, and self-formed groups more likely to repay than externally formed groups. Group size and composition did not significantly impact repayment. The study aims to provide recommendations to improve MSE loan repayment and economic
This document summarizes a research paper that assesses the factors contributing to non-performing loans in Kenyan banks. It discusses how non-performing loans negatively impact bank profitability, liquidity, and stability. It outlines the research objectives, which are to identify the key factors leading to bad loans in Kenya, establish the effects of non-performing loans on banks, analyze trends in bad loans before and after the introduction of credit reference bureaus, and determine efforts to reduce risks from non-performing assets. The significance of studying non-performing loans for policymakers, banks, and future research is also mentioned.
Management of savings and credit cooperatives from the perspective of outreac...Alexander Decker
This document summarizes a research study on the management of Savings and Credit Cooperatives (SACCOs) in Southern Tigrai, Ethiopia from the perspectives of outreach and sustainability. The study analyzed data from SACCO members and documentation to examine relationships between growth measures like membership, loan portfolio size, and financial performance indicators. It found a positive correlation between asset utilization and financial performance, as well as between operational efficiency and asset size. However, operational efficiency was negatively correlated with financial performance. Factors like lack of awareness, weak governance, policy issues, and competition negatively impacted outreach and sustainability. The study concluded rural SACCOs can effectively link urban liquidity to rural credit needs if well-managed for
11.management of savings and credit cooperatives from the perspective of outr...Alexander Decker
This document summarizes a research study on the management of savings and credit cooperatives (SACCOs) in Southern Tigrai, Ethiopia from 2007 to 2010. The study assessed the growth and performance of 10 SACCOs in terms of outreach to members and financial sustainability. Key findings include:
1) Membership in the SACCOs increased over the study period, with an average growth rate of 25.08% from 2007 to 2010. Total membership across the 10 SACCOs rose from 860 in 2007 to 1,037 in 2010.
2) Total deposits and credits disbursed by the SACCOs also increased substantially over the study period, with average annual
11.management of savings and credit cooperatives from the perspective of outr...Alexander Decker
This document summarizes a research study on the management of savings and credit cooperatives (SACCOs) in Southern Tigrai, Ethiopia from 2007 to 2010. The study assessed the growth and performance of 10 SACCOs in terms of outreach to members and financial sustainability. Key findings include:
1) Membership in the SACCOs increased over the study period, with an average growth rate of 25.08% from 2007 to 2010, indicating growing outreach.
2) Total deposits and credits disbursed by the SACCOs also increased substantially over the study period, with growth rates ranging from 41.43% to 185.80% for deposits and 48.58
Determinants of Coffee Farmers Cooperatives’ Demand for Institutional Credit:...Premier Publishers
This study explored determinants of coffee farmer cooperatives’ demand for institutional credit under the Ethiopian context. The data was collected from 100 farmers primary cooperatives and analysed using descriptive statistics and Heckman two-step selection econometric model. The study reveals that the vast majority of the study cooperatives have potential demand for credit, while the revealed demand was found to be relatively low. Different sets of variables were found to influence cooperatives’ potential and actual demand for institutional credit in different ways. In order to address constraints preventing farmer cooperatives from effectively demanding and accessing institutional credit, recommendations are made in relation to the borrower cooperatives, lending banks and government policy.
Similar to 15 isaac wachira mwangi final206-226 (20)
A universal model for managing the marketing executives in nigerian banksAlexander Decker
This document discusses a study that aimed to synthesize motivation theories into a universal model for managing marketing executives in Nigerian banks. The study was guided by Maslow and McGregor's theories. A sample of 303 marketing executives was used. The results showed that managers will be most effective at motivating marketing executives if they consider individual needs and create challenging but attainable goals. The emerged model suggests managers should provide job satisfaction by tailoring assignments to abilities and monitoring performance with feedback. This addresses confusion faced by Nigerian bank managers in determining effective motivation strategies.
A unique common fixed point theorems in generalized dAlexander Decker
This document presents definitions and properties related to generalized D*-metric spaces and establishes some common fixed point theorems for contractive type mappings in these spaces. It begins by introducing D*-metric spaces and generalized D*-metric spaces, defines concepts like convergence and Cauchy sequences. It presents lemmas showing the uniqueness of limits in these spaces and the equivalence of different definitions of convergence. The goal of the paper is then stated as obtaining a unique common fixed point theorem for generalized D*-metric spaces.
A trends of salmonella and antibiotic resistanceAlexander Decker
This document provides a review of trends in Salmonella and antibiotic resistance. It begins with an introduction to Salmonella as a facultative anaerobe that causes nontyphoidal salmonellosis. The emergence of antimicrobial-resistant Salmonella is then discussed. The document proceeds to cover the historical perspective and classification of Salmonella, definitions of antimicrobials and antibiotic resistance, and mechanisms of antibiotic resistance in Salmonella including modification or destruction of antimicrobial agents, efflux pumps, modification of antibiotic targets, and decreased membrane permeability. Specific resistance mechanisms are discussed for several classes of antimicrobials.
A transformational generative approach towards understanding al-istifhamAlexander Decker
This document discusses a transformational-generative approach to understanding Al-Istifham, which refers to interrogative sentences in Arabic. It begins with an introduction to the origin and development of Arabic grammar. The paper then explains the theoretical framework of transformational-generative grammar that is used. Basic linguistic concepts and terms related to Arabic grammar are defined. The document analyzes how interrogative sentences in Arabic can be derived and transformed via tools from transformational-generative grammar, categorizing Al-Istifham into linguistic and literary questions.
A time series analysis of the determinants of savings in namibiaAlexander Decker
This document summarizes a study on the determinants of savings in Namibia from 1991 to 2012. It reviews previous literature on savings determinants in developing countries. The study uses time series analysis including unit root tests, cointegration, and error correction models to analyze the relationship between savings and variables like income, inflation, population growth, deposit rates, and financial deepening in Namibia. The results found inflation and income have a positive impact on savings, while population growth negatively impacts savings. Deposit rates and financial deepening were found to have no significant impact. The study reinforces previous work and emphasizes the importance of improving income levels to achieve higher savings rates in Namibia.
A therapy for physical and mental fitness of school childrenAlexander Decker
This document summarizes a study on the importance of exercise in maintaining physical and mental fitness for school children. It discusses how physical and mental fitness are developed through participation in regular physical exercises and cannot be achieved solely through classroom learning. The document outlines different types and components of fitness and argues that developing fitness should be a key objective of education systems. It recommends that schools ensure pupils engage in graded physical activities and exercises to support their overall development.
A theory of efficiency for managing the marketing executives in nigerian banksAlexander Decker
This document summarizes a study examining efficiency in managing marketing executives in Nigerian banks. The study was examined through the lenses of Kaizen theory (continuous improvement) and efficiency theory. A survey of 303 marketing executives from Nigerian banks found that management plays a key role in identifying and implementing efficiency improvements. The document recommends adopting a "3H grand strategy" to improve the heads, hearts, and hands of management and marketing executives by enhancing their knowledge, attitudes, and tools.
This document discusses evaluating the link budget for effective 900MHz GSM communication. It describes the basic parameters needed for a high-level link budget calculation, including transmitter power, antenna gains, path loss, and propagation models. Common propagation models for 900MHz that are described include Okumura model for urban areas and Hata model for urban, suburban, and open areas. Rain attenuation is also incorporated using the updated ITU model to improve communication during rainfall.
A synthetic review of contraceptive supplies in punjabAlexander Decker
This document discusses contraceptive use in Punjab, Pakistan. It begins by providing background on the benefits of family planning and contraceptive use for maternal and child health. It then analyzes contraceptive commodity data from Punjab, finding that use is still low despite efforts to improve access. The document concludes by emphasizing the need for strategies to bridge gaps and meet the unmet need for effective and affordable contraceptive methods and supplies in Punjab in order to improve health outcomes.
A synthesis of taylor’s and fayol’s management approaches for managing market...Alexander Decker
1) The document discusses synthesizing Taylor's scientific management approach and Fayol's process management approach to identify an effective way to manage marketing executives in Nigerian banks.
2) It reviews Taylor's emphasis on efficiency and breaking tasks into small parts, and Fayol's focus on developing general management principles.
3) The study administered a survey to 303 marketing executives in Nigerian banks to test if combining elements of Taylor and Fayol's approaches would help manage their performance through clear roles, accountability, and motivation. Statistical analysis supported combining the two approaches.
A survey paper on sequence pattern mining with incrementalAlexander Decker
This document summarizes four algorithms for sequential pattern mining: GSP, ISM, FreeSpan, and PrefixSpan. GSP is an Apriori-based algorithm that incorporates time constraints. ISM extends SPADE to incrementally update patterns after database changes. FreeSpan uses frequent items to recursively project databases and grow subsequences. PrefixSpan also uses projection but claims to not require candidate generation. It recursively projects databases based on short prefix patterns. The document concludes by stating the goal was to find an efficient scheme for extracting sequential patterns from transactional datasets.
A survey on live virtual machine migrations and its techniquesAlexander Decker
This document summarizes several techniques for live virtual machine migration in cloud computing. It discusses works that have proposed affinity-aware migration models to improve resource utilization, energy efficient migration approaches using storage migration and live VM migration, and a dynamic consolidation technique using migration control to avoid unnecessary migrations. The document also summarizes works that have designed methods to minimize migration downtime and network traffic, proposed a resource reservation framework for efficient migration of multiple VMs, and addressed real-time issues in live migration. Finally, it provides a table summarizing the techniques, tools used, and potential future work or gaps identified for each discussed work.
A survey on data mining and analysis in hadoop and mongo dbAlexander Decker
This document discusses data mining of big data using Hadoop and MongoDB. It provides an overview of Hadoop and MongoDB and their uses in big data analysis. Specifically, it proposes using Hadoop for distributed processing and MongoDB for data storage and input. The document reviews several related works that discuss big data analysis using these tools, as well as their capabilities for scalable data storage and mining. It aims to improve computational time and fault tolerance for big data analysis by mining data stored in Hadoop using MongoDB and MapReduce.
1. The document discusses several challenges for integrating media with cloud computing including media content convergence, scalability and expandability, finding appropriate applications, and reliability.
2. Media content convergence challenges include dealing with the heterogeneity of media types, services, networks, devices, and quality of service requirements as well as integrating technologies used by media providers and consumers.
3. Scalability and expandability challenges involve adapting to the increasing volume of media content and being able to support new media formats and outlets over time.
This document surveys trust architectures that leverage provenance in wireless sensor networks. It begins with background on provenance, which refers to the documented history or derivation of data. Provenance can be used to assess trust by providing metadata about how data was processed. The document then discusses challenges for using provenance to establish trust in wireless sensor networks, which have constraints on energy and computation. Finally, it provides background on trust, which is the subjective probability that a node will behave dependably. Trust architectures need to be lightweight to account for the constraints of wireless sensor networks.
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. The objectives of the study discussed are to establish the extent of private equity adoption in Kenya, identify common forms of private equity utilized, and determine typical exit strategies. Private equity can involve venture capital, leveraged buyouts, or mezzanine financing. Exits allow recycling of capital into new opportunities. The document provides context on private equity globally and in developing markets like Africa to frame the goals of the study.
This document discusses a study that analyzes the financial health of the Indian logistics industry from 2005-2012 using Altman's Z-score model. The study finds that the average Z-score for selected logistics firms was in the healthy to very healthy range during the study period. The average Z-score increased from 2006 to 2010 when the Indian economy was hit by the global recession, indicating the overall performance of the Indian logistics industry was good. The document reviews previous literature on measuring financial performance and distress using ratios and Z-scores, and outlines the objectives and methodology used in the current study.
A study to evaluate the attitude of faculty members of public universities of...Alexander Decker
This study evaluated faculty members' attitudes toward shared governance in public universities in Pakistan. It used a questionnaire to assess attitudes on 4 indicators of shared governance: the role of the dean, role of faculty, role of the board, and role of joint decision-making. The study analyzed responses from 90 faculty across various universities. Statistical analysis found significant differences in perceptions of shared governance based on faculty rank and gender. Faculty rank influenced perceptions of the dean's role and role of joint decision-making. Gender influenced overall perceptions of shared governance. The results indicate a need to improve shared governance practices in Pakistani universities.
A study to assess the knowledge regarding prevention of pneumonia among middl...Alexander Decker
1) The study assessed knowledge of pneumonia prevention among 60 middle-aged adults in rural Moodbidri, India. Most subjects (55%) had poor knowledge and 41.67% had average knowledge. The mean knowledge score was 40.66%.
2) Knowledge was lowest in areas of diagnosis, prevention and management (35.61%) and highest in introduction to pneumonia (45.42%).
3) There was a significant association between knowledge and gender but not other demographic factors like age, education level or occupation. The study concluded knowledge of prevention was low and health education is needed.
A study regarding analyzing recessionary impact on fundamental determinants o...Alexander Decker
This document analyzes the impact of fundamental factors on stock prices in India during normal and recessionary periods. It finds that during normal periods from 2000-2007, earnings per share had a positive and significant impact on stock prices, while coverage ratio had a negative impact. During the recession from 2007-2009, price-earnings ratio positively and significantly impacted stock prices, while growth had a negative effect. Overall, the study aims to compare the influence of fundamental factors like book value, dividends, earnings, etc. on stock prices during different economic conditions in India.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
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Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
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A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
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Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Independent Study - College of Wooster Research (2023-2024)
15 isaac wachira mwangi final206-226
1. European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 3, No.3
Determinants of Access to Credit by Individuals in Kenya: A
Comparative Analysis of the Kenya National FinAccess
Surveys of 2006 and 2009
Isaac Wachira Mwangi (Corresponding Author),
Research and Policy Analysis Department
Central Bank of Kenya
PO Box: 60000-00200 Nairobi, Kenya
Email: MwangiIW@centralbank.go.ke
or
wamwabz@gmail.com
Phone: (020) 2860000
Mobile: +254 721395781
Moses Muse Sichei
Research and Policy Analysis Department
Central Bank of Kenya
Box: 60000-00200 Nairobi, Kenya
Email: sicheimm@centralbank.go.ke
Phone: (020) 2860000
Abstract
Access to credit remains a farfetched goal to the vast majority of Kenyans. Kenya’s National FinAccess
Survey, 2009 revealed that 60.4% of Kenya’s adult population is totally excluded from the credit market
despite concerted government efforts to deepen access. This however marks a slight improvement from the
63.4% figure recorded in 2006. Using multinomial probit models, the study drew a comparative analysis of
the role played by individual characteristics on access to credit from various strands in 2006 and 2009.
Results indicate that increase in household size reduced access to bank loans and ASCAs while it promoted
access to loans from buyers of harvest. Increase in distance to service provider led to a decline in access to
credit even though the impact was marginal. On the other hand, increase in age; education and income tend
to enhance access to credit but the probability of access drops as one draws close to retirement age. The
study recommends that measures geared towards reduction of information asymmetry like assessing the
household characteristics, increased sharing of information, increased income need to be enhanced to help
deepen access to credit.
Keywords: Financial access; Financial exclusion
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2. 1. INTRODUCTION
A key policy concern in Kenya is that financial institutions are not providing enough credit to new
economic activities, and in particular, the expansion of small and micro enterprises (SMEs). Recent
financial access surveys show that access to credit is a major problem especially in the rural areas (FSD
2006 and FSD and Central Bank, 2009). Specifically, the 2009 survey shows that 50 percent of the rural
individuals had never used any credit service compared to 61.7 percent in 2006.
According to Sacerdoti(2005), among the reasons for lack of access to credit from banks in Sub-Saharan
Africa are inability of borrowers to provide accurate information on their financial status, absence of
reliable and updated company and land registries, weak claim recovery and collateral realisation process
such as malfunctioning courts and cumbersome legal and judicial procedures. Other reasons include, long
physical distance to the nearest financial services provider, high cost of the credit, socio-economic and
demographic characteristics that make them less creditworthy1.
There are a number of other alternatives to bank credit. First is Microfinance Institutions (MFIs), which
have an advantage over traditional banks and largely favour Small Medium Enterprises (SMEs) which may
be unable to meet conventional bank criteria such as producing formal financial statements. Instead, MFIs
depend on cash-flow based lending, credit scoring, prior lending experience with the client, and group
lending which gives them a competitive edge over banks. However, the main challenges to MFIs are lack
of credit lines, medium-term and long-term financing from banks or other sources as well as high cost of
their credit to potential borrowers. Second, is Savings and Credit Cooperative Societies (SACCOs) which
depends on the amount of mobilised savings and deposits to extend loans to members. Other credit sources
include; Accumulating Savings and Credit Associations (ASCAs or chamas), Government, Employer,
Informal lenders, Buyers of Harvest, Local shops and family/friends.
The practise of credit rationing by financial institutions using interest rates has locked out most poor
individuals as only large scale borrowers who expect higher returns can bear the high cost of borrowing
(Stiglitz and Weiss, 1981). Due to the potential for adverse selection resulting from information asymmetry
between lenders and borrowers, lenders are often discouraged from using the interest rate as a way to ration
credit. Most rural individuals particularly rely on informal credit facility from buyers and sellers of
consumer goods like shops and farmers. However, where there is no full information about the level of risk
and credit worthiness of the individual, access to credit facility from both formal and informal lenders is
constrained. The establishment and launch of the credit reference bureaus is expected to change the credit
landscape since information on the credit worthiness is to be made available hence reducing the degree of
information asymmetry. However, launch of this body does not suffice since information on most potential
borrowers and first timers remain unknown. An understanding of the individual demographic and
socioeconomic characteristics and the level of access to credit could help in filling the knowledge gap on
why most people remain financially excluded and how access can be deepened.
1
Banks and other credit suppliers use the following in credit assessment: Character of the borrower(C),
Amount to be borrowed (A), Margin (M) or profit from lending, Purpose(P) of the loan, Ability(A) to
repay, Repayment Amounts (R), Insurance (I) for the loan or security. This is referred to as CAMPARI
framework in commercial banking parlance.
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3. To analyze this problem, a multinomial probit framework is used on both the 2006 and 2009 FinAccess
National Survey data. The results show that income, gender (1 is male and 2 female), marital status, and
higher education tend to have a direct positive relationship to credit access. Distance to service provider
and household size has an inverse relationship with access to credit. The study recommends that credit
reference bureaus needs to be strengthened to facilitate more sharing of information about potential
borrowers. Besides, the government should ensure there is increased productivity given the critical role
played by income in raising access to credit.
The rest of the paper is organized as follows; Section 2 discusses the literature review, Section 3 gives the
empirical framework and data analysis while Section 4 discusses the empirical results. Section 5 gives the
conclusions and policy recommendations for the study.
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4. 2. LITERATURE
Although theories such as pecking order hypothesis (Myers, 1977), theory of perfect capital markets
(Modigliani & Miller, 1958), shape the functioning of capital markets, most of the reviewed literature
hugely supports the permanent income hypothesis (Friedman, 1957) in explaining the functioning of credit
markets. This model assumes the presence of perfect capital markets. Besides, it assumes that economic
and political institutions do not matter, even though they determine the structure and costs of human
interaction. On the contrary developing countries, especially low-income countries, are characterized by
institutional rigidities in the capital markets that deny the sustainability of the neo-classical assumptions of
well functioning markets, perfect competition and mobility of factors of production. With institutions
playing a critical role in determining the performance of economies, it is perhaps no surprise that credit
channel plays a critical role as safety nets to cushion the poor against income loss or transitory changes in
income as well as counter situations where the state is too weak to implement effective market policies.
Developing countries are also characterized by ubiquitous information asymmetry and weak mechanisms in
the financial markets to enforce formal contracts forcing them to look for alternatives in the informal sector
which act as risk sharing mechanisms (Cox and Fafchamps, 2007). Given this fact, individuals are highly
likely to receive loans from close relatives such as parents, spouses, and children among other informal
lenders as opposed to the organized formal strands. Contrary to expectations of permanent income
hypothesis where only permanent changes in income affect consumption, transitory changes in income
have been found to impact on the consumption pattern (Campbel and Mankiw, 1989).
While two major approaches have been put forward to guide empirical work on access to credit; the direct
method by Japelli (1990) appears to be more robust. This method was used to counter the shortcomings of
the indirect method where uncertainty among other factors was observed as leading to precautionary
behaviour among households which ultimately led to changes in the consumption behaviour due to
transitory changes in income even in the absence of credit constraints.
Empirical studies indicate that increase in income raises access to credit. This was supported by Johnson
and Morduch (2007), Diagne (1999), Bhuiya et al (2001) and Marge Sults (2003). People with more wealth
captured in terms of household assets, size of land and number of livestock are found to have greater access
to credit. Rassmussen et al (2005) puts it rightly by his argument that poverty is indeed a credit constraining
factor. Bali Swain (2002) shares similar sentiments through his findings that more resource endowment
enhances access to credit. Age and education appeared to play greater role in the informal credit markets.
Zeller (1994) established that highly educated persons preferred loans from informal markets than formal
ones. In general, more educated persons were less constrained according to Marge Sults (2003). In terms of
age, the study argued that persons falling between 26-35 years were more constrained than those less than
26 years of age. The study further argued that big families were less constrained.
Other determinants cited included gender where Mayada et al (1994) claimed that women are especially
discriminated against in formal financial markets. However, according to Zeller (1994), gender appeared to
have no impact. Navajas and Tejerina (2006) cited high service cost as a major constraint.
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5. Table 1: Expected Effects from theory
Variable Description Expected Explanation
sign
Income Proxied using expenditure/main Positive Transitory changes in income
economic activity that earns affect consumption (Campbel and
income; Mankiw, 1989)
Age Age of respondents in years Positive Access at intermediate age is
higher (Zeller, 1994)
Level of This is captured using highest Positive The higher the education , the
Education education level attained higher the demand (Zeller, 1994)
Gender 1-Male (Reference dummy); 2- Negative for Women are discriminated against
female women (Mayada et al, 1994)
Age_Gender Random selection of age category Positive Likely to be positive for
and gender intermediate aged males (Zeller,
1994; Mayada, 1994)
Marital Status 1-Single (reference dummy); 2- Positive Based on the household
Divorced; 3-Widowed; 4- constitution
Married/living with Partner
Household Number of family members in Positive More labour available in a
Size household household improves family
business (Marge Sults, 2003)
Distance from Captured using duration to the Negative Despite being close to credit
Credit Source nearest financial service provider source, households were still
rationed (Johnson and Morduch,
2007)
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6. 3. CONCEPTUAL FRAMEWORK AND DATA ANALYSIS
The current study adopts a direct approach as used by (Jappelli, 1990 and Marge Sults, 2003) where data on
the credit status of households has been collected. This approach focuses on those who applied and
received credit, those who applied and were denied and those who never applied for credit. While both
studies explored those with access and the credit constrained, the current study seeks to extend this study
by distinguishing the level of access with respect to formal and informal institutions. This is besides
capturing the impact of the interaction between age and gender.
3.1 Theoretical Model
This study is motivated by McFadden’s random utility model (RUM). An individual is faced with various
credit alternatives. The utility function can be written as;
U ij xij ; zij V j xij ; j , i 1,2,..., N , j 1,2,...M (1)
Where;
U ij xij ; z ij j represents the utility derived by individual i, from credit choice of alternative j
xij represents the observed characteristics of individual i and alternative j chosen
z ij represents the unobserved characteristics of individual i and alternative j chosen
V j xij ; denotes the deterministic component of the utility
j is the random component of the utility
There are 11 alternatives, j;
Formal: loans from banks.
Formal other: Loans from Savings and Credit Cooperative Societies (SACCOs), government institution,
and Hire Purchase.
Informal: Loan from employer, Accumulative Savings and Credit Associations (ASCA’s)2, Informal
lenders, Buyers of harvest and loans from Shops/suppliers
Excluded: This comprises of loans from family/friends. They are considered as excluded since even
informal groups require some sort of organizational structure with some common overriding purpose.
Different multinomial models can be used by making different assumptions about the joint distribution of
the error terms. The assumption that the error terms are independent across alternatives would lead to the
unordered multinomial logit (MNL) and conditional logit(CL) models. Although this assumption has the
advantage that the likelihood function is easy to compute, but it leads to very unrealistic predictions e.g.
2
Commonly referred to in Kenya as Chamas i.e.swahili name for groups
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7. adding another alternative does not change the choices individuals make, which is the classic case of the
independence of irrelevant alternatives (IIA) or the red bus-blue bus problem.
The nested logit relaxes the IIA assumption by grouping the errors with independence across the credit
alternatives but correlation permitted within groups. The nested logit require existence of a clear nesting
structure. The challenge in our case is that the existing survey data does not have alternative-varying
regressors.
The alternative model that is used in the study is the multinomial probit (MNP). This approach introduces
correlation across choices by assuming that the errors are jointly normally distributed with covariance
matrix , which is not restricted to be a diagonal matrix.
MND0, , with I M and (2)
Where is a kronecker product, M is the number of alternatives
3.2 Data type and sources
The analysis is based on Financial Access, 2009 and 2006 survey data, collected by the Financial Sector
Deepening (FSD) Kenya, in collaboration with the Central Bank of Kenya and the Kenya National Bureau
of Statistics (KNBS). FSD Kenya is an organization founded in 2005 with an aim of accelerating growth of
the financial markets to stimulate wealth creation and poverty reduction by low income households and
small enterprises.
The study targeted 6,343 (2009) and 4214 (2006) respondents who were above 18 years which is the
current legal age for obtaining a national identity (ID) card in Kenya. Those below 16 years were not
investigated since they are not considered to be mature enough to make independent decisions as to where
to seek credit services.
The households were selected randomly throughout the country based on the rural and urban clusters.
Respondents were later selected from those households to give their response on various financial matters.
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8. 4. ESTIMATION RESULTS
4.1 Descriptive statistics
Appendix Table A1 presents change in predicted probabilities on access to loans from selected sources for
years 2006 and 2009 while figure 1 below represents a comparative analysis of the access strands in 2006
and 2009.
Fig 1: Comparative analysis of 2006 and 2009 Access to Credit from Various Strands
The figure indicates that there was a marginal increase in access to credit in 2009 (39.62%) up from
36.58% in 2006. Access to credit was distributed among the four strands in 2009 as follows; formal
(7.12%), formal other (7.72%), informal (68.84%) and excluded (16.32%). The trend shows that there was
a 1.67% increase in access to credit in 2009 from the formal strands where banks fall as compared to 2006.
The average age of respondents with access to loans rose from 37.21 in 2006 to 39.21 in 2009 an indication
that the probability of accessing loans increases with age.
4.2 Econometric Analysis
Since discrete choice models rely heavily on marginal effects, this section focused on the predicted
probabilities of various alternatives as analysed using multinomial probit technique.
4.2.1 Changes in Probability
This technique sought to establish the linkage between socioeconomic and demographic variables for
selected individuals and their choice of credit source. 11 alternative sources of credit were evaluated to
establish the factors driving individual preferences for each alternative. This is presented in the Appendix
(Table A1). Table A2 shows that the probability of accessing loans from the formal (Banks being the
highest gainer) and formal other strand improved in aggregate terms (1.5 per cent and 1.4 per cent,
respectively) implying that, most formal institutions are now becoming more aggressive in promoting their
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9. loan facilities while at the same time trying to make them most attractive for potential borrowers.
Previously, banks only targeted customers visiting the branch to apply for loans. Given the level of
competition in the banking industry, banks have been forced to invest heavily in marketing their products
and this initiative appears to be bearing fruit. The probability of obtaining a loan from a bank increased by
1.52 per cent in 2009 with a similar trend being observed for SACCOs and MFIs whose probabilities
increased by 1.21 per cent and 1.4 per cent, respectively.
Despite Government and Hire Purchase loans falling in the formal other strand, the probability of accessing
loans from theses alternatives reduced by 0.2 per cent and 1 per cent, respectively. This could be explained
by the rising default cases especially in the case of Higher Education Loans which limits the amount of
funds available for advancement to other needy cases. Hire Purchase also faces similar challenges and can
be explained by the rising auctioning of property from the defaulters. The informal strand has been on a
loosing trail given that the probability of borrowing declined for all the alternatives 5.8 per cent in
aggregate.
Local shops/supplier lost with the highest margin 3.2 per cent despite its wide popularity in the rural areas
followed by ASCAs (1.5 per cent). Similar declines in probabilities were observed for loans from informal
money lenders, buyers of harvest and employers. Loans from this strand are usually grounded on mutual
trust and goodwill. While social capital may be the greatest endowment by the rural populace, failure to
tap it will continue to deprive them from accessing loan facilities from both the formal and informal
strands.
Table A2 Change in Probabilities of Accessing Loans in 2009 and 2006
Credit Strand Predicted Probabilities
2009 2006 Difference
Formal strand
Bank 0.03177045 0.01653999 0.01523
Formal Other Strand
SACCO 0.03305839 0.02096975 0.012089
MFI 0.02454787 0.01050907 0.014039
Government 0.00166945 0.00386978 (0.0022)
Hire purchase 0.00005091 0.01011519 (0.01006)
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10. Informal Strand
Informal Lender 0.00537951 0.00704183 (0.00166)
ASCA 0.03468041 0.01921676 0.015464
Buyer of harvest 0.01503235 0.01737726 (0.00234)
Employer 0.00559312 0.01135729 (0.00576)
Local shop/supplier 0.66618853 0.69866491 (0.03248)
4.2.2 Marginal Effects from MNP Model
Household size
The results in Table A1 show that household size significantly explains access to credit from the buyer of
harvest only in both 2006 and 2009. In the 2009 survey an increase in household size by one person
increases the probability of accessing loan from buyer of harvest by 0.2 per cent. This makes sense since a
large family is quite important in the production of agricultural produce. However, the results for 2006
survey paint a different picture- household size reduces access to credit from the buyer of harvest.
Age
In the 2006 survey age has a positive statistically significant relationship with access to credit from banks
and SACCOS as expected? However, it has a negative relationship with loans from government. The
rather unexpected results can be rationalised by the fact that the loans from government are mainly from the
High Education Loans Board (HELB), which mainly target young people just joining universities. In the
2009 survey age has a positive statistically significant relationship with credit from banks, SACCOs, MFI
and ASCAS. However, age reduces the probability of accessing credit from a local shop/supplier.
In both 2006 and 2009, there is a quadratic relationship between access to credit and age. There are two
trends noted. First, for banks, MFIs and ASCAs, increase in age raises the probability to access credit but
after some age the probability declines. This can be rationalised by the fact that the CAMPARI framework
used by banks automatically views very old applicants are less creditworthy. Second, government loans in
2006 and loans from local in 2009, there is a U-shaped relationship with age. This means that at a very
young age the probability of accessing credit declines upto some optimal age when the probability
increases.
Gender
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11. In the 2006 survey, gender was a significant factor for SACCOs and ASCAs. Specifically, SACCOs
preferred lending to males compared to females. Contrariwise the ASCAs preferred lending the women
compared to men. This makes sense given the fact that ASCAs which are otherwise known as ‘chamas’
mainly comprise of women making them the biggest beneficiaries.
In the 2009 survey men had a higher probability of accessing credit facilities from banks, SACCOs and
Employers compared to women. Contrariwise women had a higher chance of accessing credit facilities
from MFIs and local shops. This can be rationalised by the fact that MFIs in Kenya mainly target women
groups. Similarly, local shops mainly offer household goods on credit, which generally benefits women
who manage household expenditure in most homes. Going by the 2006 and 2009 figures which depict a
rising trend, there is a strong indication that females are becoming more actively involved in the credit
markets.
Level of education
In the 2006 survey, increase in the number of schooling years was found to increase the probability of
accessing loans from banks, SACCOs, MFIs, ASCAs and Employer. However, the number of schooling
years reduced the probability of accessing credit facilities from a local shop. Specifically, as the number
of schooling years increase by one year, the probability of accessing loans from the local shop declined by
about 4.7 per cent.
In the 2009 survey the situation did not change much- increase in the number of schooling years increased
the probability of accessing loans from banks, SACCOs, government, and employer. However, just like in
2006 survey, the probability of accessing credit facilities from a local shop declined with increase in the
number of schooling years.
Marital status
Except for loans from local shops, marital status is not a statistically significant variable in explaining
access to loans. The results show that the probability of accessing loans from a local shop is higher for
married people. This can be rationalised by the fact that local shops lend on the basis of trust which to a
certain extent will be higher for a married person since a married person is perceived to be responsible over
his/her action and is therefore not likely to default in settling the debt. Married persons are also considered
to be abit stable and would take longer to migrate to another place.
Distance
Distance is measured as the duration it takes to reach the nearest financial provider like a bank. While
distance was quite significant in explaining access to loans for most alternatives in 2006, only the marginal
effects for the employer and local shop loans were significant in 2009. Specifically, the probability of
accessing credit facilities from a local shop increase with distance to the nearest financial services provider
in both 2006 and 2009 surveys. There is therefore need to take steps to take credit services to the people,
especially in the rural areas.
Level of income
216
12. While income was not significant in explaining access to loans in 2006, the variable was found to be
statistically significant in explaining loans from Banks, SACCOs and local shops. Increase in income was
found to contribute positively on access to loans from both Banks and SACCOs while it reduced the
probability of accessing loans from a local shop by 0.15% in 2009 up from 0.013% in 2006. The negative
relationship with credit from local shops can be explained by the fact that households with low income live
hand to mouth and are likely to utilise credit from the local shop.
4.3 CONCLUSIONS
Findings from this study reveal that only 39.62% (up from 36.58% in 2006) of the total sampled population
have access to credit in Kenya, for whom 5.82% and 33.80% accounts for formal and informal credit
sources. The total adult population considered to be credit constrained (excluded) therefore stands at
60.38%. Men continue to enjoy access to loans from banks as women seek alternatives like MFIs and other
informal loans from ASCAs and local shops. The age of a person appear to have a quadratic relationship,
with the middle aged persons having a higher access than the elderly persons. Similarly, highly educated
persons have a higher access to credit from the formal strand and particularly Banks and SACCOs, while
their participation in local shop loans is greatly reduced. Distance on the other hand served as a hindrance
to accessing credit since most individuals were observed to prefer walking shorter distances to their
financial service providers. However, the impact of distance was minimal, reducing access to bank loans
marginally while at the same time increasing access to local shop loans with the same margin.
4.4 POLICY RECOMMENDATIONS
This paper focused on the socioeconomic and demographic factors that characterize access to credit in
Kenya and particularly centred on the four credit strands namely the formal formal other, informal and the
excluded category. The study established that despite the spirited campaigns stepped up by the government
to deepen access to loans; majority remain financially excluded. This is attributed to lack of information
about their individual characteristics which if known could help reduce the degree of information
asymmetry. Disclosure of their individual characteristics could signal their credit worthiness and make
them attractive to lending institutions. One initiative by the government through establishment of Credit
Reference Bureaus (CRBs) will go a long way in lowering credit risks through improved sharing of
borrower information. Towards this end, the government should ensure that CRBs are extended to all
sectors including agriculture where most borrowers hail from.
Agency banking which is now being used by various commercial banks to increase access to financial
services should be extended further to increase proximity to financial service providers. Such initiatives
will also help in lowering operating costs for the banks and this could help expand access to loan services.
Given that of the total banked population, only 7.12% and 7.72% acquired loans from a formal and formal
other strand respectively, there is need for further research to investigate why informal credit is more
preferred to formal so that the formal institutions can borrow a leaf to increase their market share. The
potential for informal lenders can be tapped further given their popularity among the rural populace. An
Act of Parliament should also be introduced to oversee and regulate the operations in the informal sector.
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13. Economic empowerment of masses should be enhanced to increase the income levels. This can be
enhanced through increased participation in the labour markets as a result of increased creation of jobs and
self employment. This will help in raising income which could in turn be used as collateral when applying
for loans. The government must therefore step in to ensure that more jobs are created and for the self
employed, the government should ensure that raw materials are acquired at affordable prices besides
creating markets for the finished goods. Since rural residents rely heavily on agricultural produce, the
government should provide subsidies for the farm inputs and introduce high yielding and fast maturing
crops so that the frequency of receiving earnings can be raised. Besides to mitigate against the adverse
effects of drought, the government should sink boreholes and establish irrigation projects to ensure there is
constant water flow for framing activities.
Since education enhances access to credit, the government must ensure that free primary education and free
secondary education is extended to tertiary levels since higher education makes people arrive at informed
decisions about loans. The government should be ready to support the bright students who lack the ability
to pay fees. This can be done by increasing the money allocated towards bursary funds. The various
devolved funds should therefore be monitored to ensure that students benefit from the same. More tertiary
institutions should also be established. In doing this, the government must ensure that courses under study
are relevant and applicable outside the classes to promote self employment.
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