How do borrowers respond to improvements a lender’s ability to punish defaulters? We implemented a randomized field experiment in Malawi examining the impact of fingerprinting of borrowers, which improves the lender’s ability to withhold future loans from individuals who have previously defaulted. Study participants were smallholder farmers applying for agricultural input loans, and were random...

As more countries are planning to inaugurate or enlarge student loan schemes, much of the debate is over the question of the optimal form of the repayment obligation: specifically, whether it should be according to a fixed schedule of payments or a percentage or earnings or income. This paper argues that the current fascination with income contingency is frequently based on a set of supposed ad...

In order to stress test loan portfolios for the impacts of climate change, historical events need be analyzed create templates future events. Using 2012 Midwestern US drought as an example, this work creates a stress-testing template droughts. The analysis connects weather and crop yield data on local macroeconomic conditions by comparing drought-impacted agricultural counties with nearby urban...

One of the more significant changes in the variables. Variables found to be significant U. S. agricultural industry in recent years has were: total debt divided by total assets, reabeen the increased use of credit to finance prosonable farm value, total liabilities, marital duction and capital expenditures. Since 1970, status, family living expense as a percentage of outstanding farm debt has m...

This paper presents a conceptual framework for explaining credit union (CU) loan delinquency and profitability in developing countries, together with empirical estimation for a unique sample of Latin American CUs. Delinquency and profitability were found to be responsive to the incentives that CUs create for their borrowers to repay loans. These incentives include loan and deposit rates, the us...

How do borrowers respond to improvements in a lender’s ability to punish defaulters? We implemented a randomized field experiment in Malawi examining the impact of fingerprinting of borrowers, which improves the lender’s ability to withhold future loans from individuals who have previously defaulted while rewarding good borrowers with increased loan sizes. Study participants were smallholder fa...

Loan contracts performance determines the profitability and stability of the financial institutions, and screening the loan applications is a key process in minimizing credit risk. Before making any credit decisions, credit analysis (the assessment of the financial history and financial backgrounds of the borrowers) should be completed as part of the screening process. Good borrowers with low c...