Publication:
Commercialization and Mission Drift: Evidence from a Large Chinese Microfinance Institution

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dc.contributor.authorJia, Xiangping
dc.contributor.authorCull, Robert
dc.contributor.authorGuo, Pei
dc.contributor.authorMa, Tao
dc.date.accessioned2016-06-13T22:17:49Z
dc.date.available2016-06-13T22:17:49Z
dc.date.issued2016-05
dc.description.abstractFront-line loan officers of microfinance institutions are important in acquiring information on potential borrowers and selecting them in accordance with the microfinance institution's mission. This study uses a unique data set on loan officers and their loan portfolios from China's largest nongovernmental organization microfinance institution to test whether officers' personal characteristics affect the size and quality of their loans. The analysis uses a period in which the institution shifted from reliance on government donations and subsidies to commercial sources of funding. Imposing more commercial incentives on loan officers could affect how they balance potentially competing objectives to serve the poor and pursue profitability. The paper finds that loan officers who were formerly farmers or worked in local government were better able to maintain lending to poorer borrowers, without incurring substantially lower repayment rates on their loans. In short, it appears that the career backgrounds of loan officers did play a role in preventing mission drift.en
dc.identifierhttp://documents.worldbank.org/curated/en/2016/05/26396730/commercialization-mission-drift-evidence-large-chinese-microfinance-institution
dc.identifier.doi10.1596/1813-9450-7680
dc.identifier.urihttps://hdl.handle.net/10986/24519
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7680
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCREDIT PROGRAM
dc.subjectBORROWER
dc.subjectMICROLOAN
dc.subjectLIABILITY
dc.subjectPUBLIC SECTOR COMMERCIAL BANKS
dc.subjectJOINT LIABILITY
dc.subjectSTOCK
dc.subjectAMOUNT OF LOANS
dc.subjectINTEREST
dc.subjectDUMMY VARIABLES
dc.subjectEXTERNAL FUNDING
dc.subjectRURAL BANKING
dc.subjectINTEREST RATE
dc.subjectEXCHANGE
dc.subjectFORMAL LOAN
dc.subjectDEVELOPING COUNTRIES
dc.subjectREPAYMENTS
dc.subjectPOLITICAL ECONOMY
dc.subjectPOSITIVE COEFFICIENT
dc.subjectPORTFOLIO
dc.subjectRURAL CREDIT
dc.subjectCREDIT COOPERATIVES
dc.subjectLOAN
dc.subjectFINANCIAL STATEMENT
dc.subjectCREDITWORTHINESS
dc.subjectLOAN AMOUNT
dc.subjectBORROWERS
dc.subjectGOVERNMENT ASSETS
dc.subjectASSET MANAGEMENT
dc.subjectLOAN DECISIONS
dc.subjectDUMMY VARIABLE
dc.subjectINFLATION
dc.subjectINTERNATIONAL BANK
dc.subjectSTATE BANK
dc.subjectDEVELOPING COUNTRY
dc.subjectLENDER
dc.subjectMICROFINANCE INSTITUTIONS
dc.subjectCENTRAL BANK
dc.subjectMATURITY
dc.subjectSMALL BUSINESS
dc.subjectOVERDUE LOANS
dc.subjectFINANCIAL SUSTAINABILITY
dc.subjectCREDIT COOPERATIVE
dc.subjectGROUP LENDING
dc.subjectLEGAL CONSTRAINTS
dc.subjectREPAYMENT INCENTIVES
dc.subjectFINANCIAL INSTITUTION
dc.subjectCOMMERCIAL BORROWING
dc.subjectDISBURSEMENT
dc.subjectCOMMERCIAL BANK
dc.subjectPORTFOLIOS
dc.subjectCONTRACTS
dc.subjectPOOR BORROWERS
dc.subjectINTEREST RATES
dc.subjectLENDING DECISIONS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectLOCAL GOVERNMENT
dc.subjectLOAN REPAYMENTS
dc.subjectLOAN MATURITY
dc.subjectLENDERS
dc.subjectLOANS
dc.subjectCREDIT PROGRAMS
dc.subjectAGRICULTURAL BANK
dc.subjectINVENTORY
dc.subjectLOAN SIZES
dc.subjectLEGAL FRAMEWORK
dc.subjectFINANCE
dc.subjectPORTFOLIO QUALITY
dc.subjectLOAN TERMS
dc.subjectSMALL LOANS
dc.subjectINDIVIDUAL LOAN
dc.subjectIPO
dc.subjectTRANSACTION
dc.subjectRURAL FINANCE
dc.subjectLOAN REPAYMENT
dc.subjectREPAYMENT HISTORIES
dc.subjectGOOD
dc.subjectREPAYMENT HISTORY
dc.subjectCREDIT PROVIDERS
dc.subjectREPAYMENT DIFFICULTIES
dc.subjectFUTURE
dc.subjectCREDIT ACCESS
dc.subjectMICRO LOAN
dc.subjectRETURNS
dc.subjectREPAYMENT
dc.subjectFINANCIAL PERFORMANCE
dc.subjectREPAYMENT RATES
dc.subjectDISBURSEMENTS
dc.subjectCREDIT HISTORIES
dc.subjectINFORMAL PROVIDERS
dc.subjectLOAN PORTFOLIO
dc.subjectSHARES
dc.subjectFACE VALUE
dc.subjectBALANCE SHEET
dc.subjectTRANSACTION COSTS
dc.subjectDEFAULT
dc.subjectLOAN QUALITY
dc.subjectMARKET
dc.subjectCOMMERCIAL BANK LOAN
dc.subjectPOSTAL SAVINGS
dc.subjectLOAN OFFICER
dc.subjectMICROCREDIT
dc.subjectOVERHEAD COSTS
dc.subjectMICROFINANCE
dc.subjectBANK LOAN
dc.subjectGOVERNMENT SUBSIDIES
dc.subjectLOAN OFFICERS
dc.subjectLOAN APPLICATIONS
dc.subjectINVESTMENT
dc.subjectCOMMERCIAL BANKS
dc.subjectSHARE
dc.subjectCREDIT RATIONING
dc.subjectLOAN PORTFOLIOS
dc.subjectCOLLATERAL
dc.subjectPOVERTY
dc.subjectFINANCIAL RISKS
dc.subjectGROUP GUARANTEE
dc.subjectLOAN SIZE
dc.subjectREVENUE
dc.subjectPROFIT
dc.subjectFINANCIAL SUPPORT
dc.subjectRISK MANAGEMENT
dc.subjectCONSUMER PRICE INDEX
dc.subjectLENDING
dc.subjectCHECK
dc.subjectREPAYMENT PERFORMANCE
dc.subjectRISK AVERSION
dc.subjectPROFITS
dc.subjectOUTSTANDING LOANS
dc.subjectLIABILITIES
dc.subjectDURABLES
dc.subjectGUARANTEE
dc.subjectSAVINGS BANK
dc.subjectDEVELOPMENT BANK
dc.subjectINCOME LEVEL
dc.subjectMICROFINANCE INSTITUTION
dc.subjectMICROENTERPRISES
dc.titleCommercialization and Mission Driften
dc.title.subtitleEvidence from a Large Chinese Microfinance Institutionen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleCommercialization and Mission Drift: Evidence from a Large Chinese Microfinance Institution
okr.date.disclosure2016-05-23
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2016/05/26396730/commercialization-mission-drift-evidence-large-chinese-microfinance-institution
okr.guid698011468185928633
okr.identifier.doi10.1596/1813-9450-7680
okr.identifier.externaldocumentum090224b08435611b_1_0
okr.identifier.internaldocumentum26396730
okr.identifier.reportWPS7680
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2016/05/23/090224b08435611b/1_0/Rendered/PDF/Commercializat0ofinance0institution.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryChina
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicPoverty Reduction::Rural Poverty Reduction
okr.unitFinance and Private Sector Development Team, Development Research Group
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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