Cull, RobertDemirgüç-Kunt, AsliMorduch, Jonathan2012-03-192012-03-192009-10-01https://hdl.handle.net/10986/4270Using two new datasets, the authors examine whether the presence of banks affects the profitability and outreach of microfinance institutions. They find evidence that competition matters. Greater bank penetration in the overall economy is associated with microbanks pushing toward poorer markets, as reflected in smaller average loans sizes and greater outreach to women. The evidence is particularly strong for microbanks relying on commercial funding and using traditional bilateral lending contracts (rather than the group lending methods favored by microfinance nongovernmental organizations). The analysis considers plausible alternative explanations for the correlations, including relationships that run through the nature of the regulatory environment and the structure of the banking environment; but it fails to find strong support for these alternative hypotheses.CC BY 3.0 IGOACCESS TO CREDITACCESS TO FINANCIAL SERVICESAFFILIATEAGENCY PROBLEMSBALANCE SHEETBANK BRANCHBANK BRANCH NETWORKSBANK BRANCHESBANK ENTRYBANK INTEREST RATEBANK LENDERSBANK LENDINGBANK LOANBANK MERGERSBANK POLICYBANKING CONCENTRATIONBANKING INDUSTRYBANKING SECTORBANKING SECTOR ASSETSBANKING SECTOR DEVELOPMENTBANKING SECTOR EFFICIENCYBANKING SECTOR OUTREACHBANKING SECTORSBANKING SERVICESBANKING SYSTEMBANKING SYSTEMSBANKSBORROWERBORROWINGBRANCH NETWORKBROAD ACCESSCAPITAL COSTSCASH FLOWSCENTRAL BANKSCHARTERCOLLATERALCOLLATERAL REQUIREMENTSCOMMERCIAL BANKINGCOMMERCIAL BANKSCOMMERCIAL BORROWINGCOMMERCIAL INVESTMENTCOMMERCIAL LAWCOMPANYCREDIT CONSTRAINTSCREDIT MARKETCREDIT SCORINGCREDITSCREDITWORTHINESSDEFAULT RATESDEPOSITDEPOSIT ACCOUNTSDEPOSIT INTERESTDEPOSITSDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDUMMY VARIABLEDUMMY VARIABLESECONOMIC ACTIVITYECONOMIC GROWTHECONOMIC THEORYENDOWMENTSENROLLMENTENTERPRISE DEVELOPMENTEXPANSIONFEMALE CLIENTSFINANCIAL ACCESSFINANCIAL CRISESFINANCIAL DATAFINANCIAL DEPTHFINANCIAL DEVELOPMENTFINANCIAL INNOVATIONSFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL PERFORMANCEFINANCIAL RATIOSFINANCIAL SELF-SUFFICIENCYFINANCIAL SERVICESFINANCIAL STATEMENTSFINANCIAL SUSTAINABILITYFINANCIAL SYSTEMSFINANCING OBSTACLESFIRMSFLEXIBLE FINANCINGFOREIGN BANKFOREIGN BANK ENTRYFOREIGN BANKSFORMAL BANKSFORMAL FINANCIAL SECTORGDPGREATER CREDIT AVAILABILITYGROSS DOMESTIC PRODUCTGROUP LENDINGGROUP LOANSGROWTH RATEHIGHER EDUCATION LEVELSIDINCOME STATEMENTSINDEBTEDNESSINFLATIONINFLATION RATEINITIAL PUBLIC OFFERINGINSTITUTIONAL DEVELOPMENTINTEREST INCOMEINTEREST RATEINTEREST RATE SPREADINTEREST RATE SPREADSINTEREST RATESINTEREST RATES ON LOANSINTERNATIONAL BANKIPOJOINT LIABILITYLABOR COSTSLAISSEZ FAIRELENDERLENDERSLENDING PRACTICESLEVEL OF REPAYMENTLINES OF CREDITLOANLOAN BALANCELOAN CONTRACTSLOAN OFFICERLOAN OFFICERSLOAN REPAYMENTLOAN SIZELOAN SIZESLOANS TO INDIVIDUALLOANS TO INDIVIDUALSLOCAL MARKETLONG-TERM LIABILITIESLOW-INCOME BORROWERSMACROECONOMIC CONTEXTMACROECONOMIC ENVIRONMENTMARKET COMPETITIONMARKET SIZEMFIMFISMICROBANKINGMICROFINANCEMICROFINANCE INDUSTRYMICROFINANCE INSTITUTIONMICROFINANCE INSTITUTIONSMICROFINANCE LOANMICROFINANCE LOANSMICROFINANCE MARKETMICROFINANCE ORGANIZATIONSNEW ENTRANTSNEW MARKETNON-PERFORMING LOANSNONGOVERNMENTAL ORGANIZATIONSOPERATING EXPENSESORGANIZATIONAL STRUCTUREOUTREACHOWNERSHIP STRUCTUREPER CAPITA INCOMEPOLITICAL ECONOMYPOOL OF BORROWERSPORTFOLIOPORTFOLIO QUALITYPORTFOLIOSPRIVATE CREDITPRODUCTIVITYPROFITABILITYPROFITABILITY MEASURESPRUDENTIAL SUPERVISIONPURCHASING POWERPURCHASING POWER PARITYREAL GDPREGIONAL DUMMIESREPAYMENTREPAYMENT RATESRESERVESRETURNRETURN ON ASSETSRULE OF LAWSAVINGSSHARE OF ASSETSSMALL BANKSSMALL BORROWERSSMALL BUSINESSSMALL BUSINESS CREDITSMALL BUSINESS LENDINGSMALL BUSINESS LOANSSMALL BUSINESSESSMALL ENTERPRISESMALL FIRMSMALL FIRM FINANCESMALL FIRMSSMALL LOANSSOFT LOANSSOLIDARITY GROUP LENDINGSOURCES OF FINANCESOURCES OF FUNDSTRANSITION COUNTRIESVILLAGEWOMEN BORROWERSWorld Bank10.1596/1813-9450-5078