African Development Review
Volume 26, Issue 3, 2014, Pages 520-531
Do Migrants' deposits reduce microfinance institutions liquidity risk? (Article)
Mata R.S.*
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a
Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Belgium and Centre for European Research in Microfinance (CERMi), Brussels, Belgium
Abstract
This paper is devoted to the analysis of liquidity risk in microfinance. Using both the Cox proportional hazard model and a re-sampling method on an original database of 7,828 deposit contracts issued between 2002 and 2008 by 12 village banks belonging to the Malian rural microfinance network (PASECA-Kayes), we found that the risk for a contract to default increases both with the amount deposited and the term of the contract which are, on average, higher for migrants compared to locals. We also found that deposits at risk are higher when considering migrants' time deposit compared to locals' time deposits. © 2014 The Author.
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Link
https://www.scopus.com/inward/record.uri?eid=2-s2.0-84927565045&doi=10.1111%2f1467-8268.12109&partnerID=40&md5=732be68d7b47d5d0365c88c12cfa0c30
DOI: 10.1111/1467-8268.12109
ISSN: 10176772
Original Language: English