Publication:
Borrower Leakage from Costly Screening: Evidence from SME Lending in Peru

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dc.contributor.authorArraiz, Irani
dc.contributor.authorRoth, Benjamin N.
dc.contributor.authorRuiz-Ortega, Claudia
dc.contributor.authorStucchi, Rodolfo
dc.contributor.authorBruhn, Miriam
dc.date.accessioned2022-01-24T19:30:04Z
dc.date.available2022-01-24T19:30:04Z
dc.date.issued2021-11
dc.description.abstractWe provide evidence that commercial lenders in Peru suffer leakages in their loan approval process. Leveraging a discontinuity in the loan approval process of a large bank, we find that receiving a loan approval from the bank causes loan applicants to receive offers from other financial institutions as well. Competing lenders captured almost three quarters of the new loans to previously financially excluded borrowers. Importantly, many of these borrowers never took a loan from our partner bank, even after our partner bank approved them. Lenders may therefore underinvest in screening new borrowers and expanding financial inclusion, as their competitors reap some of the benefit. Our results highlight that information spillovers between lenders may operate outside of credit registries.en
dc.identifier.citationJournal of Development Economics
dc.identifier.doi10.1596/36869
dc.identifier.urihttps://hdl.handle.net/10986/36869
dc.publisherElsevier
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subjectINFORMATION SPILLOVER
dc.subjectSME FINANCE
dc.subjectBANKING
dc.subjectFINANCIAL INCLUSION
dc.subjectFINANCIAL SUPERVISION
dc.subjectLOAN APPROVAL PRACTICE
dc.titleBorrower Leakage from Costly Screeningen
dc.title.subtitleEvidence from SME Lending in Peruen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.associatedcontenthttps://www.sciencedirect.com/science/article/pii/S0304387821000924 Journal website (version of record)en
okr.date.disclosure2024-11-01
okr.date.doiregistration2025-05-06T11:28:17.938908Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Journal Article
okr.externalcontentExternal Content
okr.identifier.doi10.1016/j.jdeveco.2021.102719
okr.identifier.report168221
okr.journal.nbpages102719
okr.language.supporteden
okr.peerreviewAcademic Peer Review
okr.region.administrativeLatin America & Caribbean
okr.region.countryPeru
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicFinance and Financial Sector Development::Finance and Development
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicFinance and Financial Sector Development::Financial Regulation & Supervision
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicPrivate Sector Development::Small and Medium Size Enterprises
okr.volume153
relation.isAuthorOfPublication471c8982-45ac-42cd-87d0-3e505bd1a972
relation.isAuthorOfPublication.latestForDiscovery471c8982-45ac-42cd-87d0-3e505bd1a972
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