Large Loans Research Articles

EVALUATING NON-PERFORMING ASSETS IN SELF-HELP GROUP-BANK LINKAGE PROGRAMME: ECONOMIC INSIGHTS FROM CENTRAL AND NORTHERN REGIONS OF INDIA

The Self-Help Group Bank Linkage Programme (SHG-BLP) plays a crucial role in providing affordable and timely credit to India’s impoverished and vulnerable populations, who are often excluded from formal credit delivery systems. However, the high incidence of Non-Performing Assets (NPAs) within this sector poses a significant barrier to the continued availability of formal loans, as elevated NPAs disrupt the credit cycle and undermine efforts to alleviate poverty. Historically, the central and northern states of India have recorded NPAs above the national average within the SHG-BLP framework. In this study, we employ multiple linear regression analysis to identify the factors contributing to high NPAs in these regions. Our findings reveal a positive correlation between larger loans and higher NPAs, emphasizing the need for thorough risk assessment and ongoing monitoring when extending substantial credit to SHG members. Additionally, the regression analysis underscores the importance of considering gender dynamics within SHGs. Although women-led SHGs generally perform well, there are inherent credit risks, particularly as both loan size and group size increase. Targeted interventions to support women-led SHGs could enhance repayment rates and reduce NPAs, given that the majority of SHG loans in these regions are managed by female-led groups. KEY WORDS: Non-Performing Asset, Self-Help Group, Bank-Linkage Programme, Loan, Financial Inclusion, Multiple Linear Regression.

Access to finance: The role of production level technology

The integration of robots and advanced technology in firm-level production processes represents a transformative shift in modern industrial practices. However, there is a lack of cumulative knowledge about the advancement of technology in the production processes affects mitigating the gender gap. Through the lens of financial accessibility, the study investigates how technological advancements influence firms' capacity to secure external financing and get large loans. Using the 2020 WorldBank Enterprises Survey data and a probit model for the analysis, our results suggest that industry robots and a high level of technology in production have the potential to reduce the gender gap in loan approvals. The findings of this have implications for decision-makers and policymakers, seeking to navigate the evolving landscape of technology-driven production and finance to enhance productivity and inclusivity.

CAPITAL STRUCTURE AND THE PERFORMANCE OF DEVELOPMENT FINANCE INSTITUTIONS IN NIGERIA

The study investigated the effect of capital structure on the performance of selected Development Finance Institutions (DFIs) in Nigeria. The study specifically examined the effect of Total Debt to Total Assets (TDTA) on performance of selected of development finance institutions in Nigeria; and ascertained the effect of Total Debt to Total Equity (TDTE) on performance of selected development finance institutions in Nigeria. The study adopted an ex-post facto research design and data were collected from published annual financial records of the selected DFIs on both TDTA and TDTE, the independent variables and Return on Assets (ROA), the dependent variable, for a period of ten (10) years (2013-2022). The population of the study composed of seven (7) national DFIs namely: Central Bank of Nigeria (CBN), Bank of Agriculture (BOA), Bank of Industry (BOI), Development Bank of Nigeria (DBN), Federal Mortgage Bank of Nigeria (FMBN), Nigeria-Export-Import Bank (NEXIM) and the Infrastructure Bank Plc (IBN). The study sampled four (4) national DFIs using a purposive sampling technique, including CBN, BOI, FMBN and NEXIM. Computation of the relevant ratios were done for the independent variables (TDTA and TDTE); and the dependent variable (ROA). Data analysis was done using multiple regression and the econometric technique of Dynamic Ordinary Least Squares (DOLS) with the aid of E-Views Version 13. The study found that TDTA has a negative but significant effect on ROA, indicating that a percentage change in TDTA leads to lower ROA by 0.071551 and TDTE has a positive effect of TDTE on ROA, showing that a percentage change in TDTE will significantly increase ROA by 0.001696. The study concluded that the investigated DFIs have low equity capital which seems to hinder their ability to attract large loans for operations. The study recommended amongst others that DFIs should maintain a balanced total debt to total assets (TDTA) and ensure the regular monitoring of the debt-to-asset ratio to ensure it remains within a healthy range which will help maintain a balance between leveraging and risk.

Role of credit on mustard production and food security in a selected area of Sirajganj District in Bangladesh

Credit is a driving force behind increased crop productivity, and food security is essential to the general advancement of humanity. The current study was carried out to analyze the socioeconomic profile of the respondents, examine the loan components, evaluate the effect of credit on mustard production, and find out how many calories each household member consumes on a per capita basis. A sample size of sixty respondents was selected randomly from Sirajganj district in Bangladesh. Primary data were collected through a field survey using a semi-structured interview schedule. Descriptive statistics, the multiple linear regression models, and the modified OECD scale were used to analyze the data. The study found that most of the respondents were in the active age group, and half of the respondents had a secondary level of education. About half of the respondents belonged to the middle-income group. Two-thirds of the respondents received a large loan. It was found that credit had a positive impact on mustard production. The poverty rate was much higher than the national average in the study area. Along with specialized banks, other financial institutions should extend agricultural loans to increase mustard production and food security for rural poor households in Bangladesh.

Modernization of the Urban Infrastructure of Ekaterinburg – Sverdlovsk in 1923–1930

Introduction. The article examines the process of formation and modernization of the urban infrastructure of Ekaterinburg – Sverdlovsk during the period of the New Economic Policy (NEP). The main mechanisms for the development of the urban economy are shown in conditions of regenerative growth of economics and a rapid increase of city’s population. The transformation of Ekaterinburg into Sverdlovsk, the administrative and political center of the Ural region, opened up opportunities to concentrate in it the local community resources and attract government funding. Using of limited market mechanisms of the NEP allowed the Sverdlovsk City Council to develop large infrastructure projects in conditions of moderate co-financing from the state. Results. Despite the large number of publications on local history, a comprehensive study of the processes of modernization of the urban infrastructure of Sverdlovsk during the NEP period was not carried out. The work analyzes the modernization of the most important sectors of urban infrastructure: electricity, transport, construction, water supply and sewerage. The abolition of command management mechanisms and the permission of private initiative in trade and small industry caused rapid growth in the city’s economy and its population. Sverdlovsk’s status as an administrative and political center of the Ural region strengthened the financial well-being of the city. The Sverdlovsk City Council received large loans from the state-controlled banking system for the development of capital construction and the development of urban infrastructure. By the end of the 1920s in Sverdlovsk, the main elements of modern urban infrastructure were created, water supply, sewerage, bus transit was built, and the construction of a tram system began. In order of regulation of economic activity and city’s property management on market conditions, a communal enterprise was created under the Sverdlovsk City Council – called Komkhoz. Conclusion. Modernization of the urban infrastructure of Sverdlovsk in 1923–1930 occurred mainly through the efforts of the local community. With the active attraction of local equity capital and loans from state-sanctioned banks, during the NEP period the city began the successful formation of a modern urban infrastructure. The course towards the development of forced industrialization of the USSR through accelerated growth of the public sector of the economy led to the gradual curtailment of private initiative on the ground in 1929–1930.

Bank restructuring under asymmetric information: The role of bad loan sales

We study restructuring solutions to the debt overhang problem faced by banks with a deteriorated loan portfolio in the presence of asymmetric information on loan quality. Classical liability restructuring solutions fail to work because banks can overstate the severity of their bad loan problem to obtain additional concessions from existing creditors. A sufficiently large loan sale requirement to the restructuring banks discourages such an opportunistic behavior, so a suitably chosen menu of loan sales cum liability restructuring is able to solve the debt overhang. We discuss the implementation of such a solution for banks funded with insured deposits through loan sales to outside investors supported by an asset protection scheme sponsored by the deposit insurance fund.

IMPLEMENTATION OF BANK BCA'S RISK MANAGEMENT STRATEGY IN FRANCHISE-BASED BUSINESS FINANCING

How to Implement Bank BCA's Risk Management Strategy in Franchise-Based Business Financing, How is the Impact of Bank BCA's Risk Management Strategy Implementation on Franchise-Based Business Financing Literature research methods are used because sources come from journals, research reports, the internet, and other sources. This research approach uses descriptive qualitative techniques. Aiming to provide an overview of the implementation of Bank BCA's risk management strategy in franchise-based corporate financing, the results of this study show the discussion of financing strategies and their impact on franchise businesses. Capital loan financing, especially in franchises to develop business, PT Bank BCA must carry out a comprehensive loan collection process and this is done to avoid the risk of bad loans, especially in the case of large loans. In addition, the bank must also assess the business continuity of the debtor and require management and supervision to maintain the continuity of the bank's business. The impact of this risk occurs when the debtor does not fulfill the contents of the credit agreement, chooses the right prospective debtor in the process of providing credit, and when the bank's HR is deceived by the appearance of the prospective debtor. Therefore, it is important to apply the 5 C's principle.

Changes in Social Network Structure in Response to Exposure to Formal Credit Markets

Abstract We show that the entry of formal financial institutions can have far-reaching and long-lasting impacts on informal lending and social networks more generally. We first study the introduction of microfinance in 75 villages in Karnataka, India, 43 of which were exposed to microfinance. Using difference-in-differences, we show that networks shrank more in exposed villages. Moreover, links between households that were both unlikely to borrow from microfinance were at least as likely to disappear as links involving likely borrowers. We replicate these surprising findings in the context of a randomised controlled trial (RCT) in Hyderabad, where a microfinance institution randomly selected 52 of 104 neighbourhoods to enter first. Four years after all neighbourhoods were treated, households in early-entry neighbourhoods had credit access longer and had larger loans. We again find fewer social relationships between households in these neighbourhoods, even among those ex-ante unlikely to borrow. Because the results suggest global spillovers, atypical in usual models of network formation, we develop a new dynamic model of network formation that emphasizes chance meetings, where efforts to socialize generate a global network-level externality. Finally, we analyse informal borrowing and the sensitivity of consumption to income fluctuations. Households unlikely to take up microcredit suffer the greatest loss of informal borrowing and risk sharing, underscoring the global nature of the externality.

On Dammed Landscapes and Invasive Infrastructures

In this article I turn my attention to two hydropower plants, HPP Dabar and HPP Nevesinje, part of the massive Upper Horizons scheme, which is currently the largest infrastructural project in Bosnia and Herzegovina. Built by the China Energy Gezhouba and financed through a large loan from the Export–Import Bank of China, the enterprise forms a part of China’s Belt and Road Initiative, an unprecedented global development programme that involves nearly half of the world’s countries. The project is being built on the Zalomka, one of the largest sinking rivers in Bosnia and Herzegovina and the world, and its potential impacts are hotly debated and may be extremely far reaching. As Rob Nixon has argued, the mega-dam projects in many postcolonial nations have ‘depended’ on both physical structure and metaphorical discourse on ‘submergence’: of ‘disposable people and ecosystems, but also on the submerged structures of dependence that lay beneath the flamboyant engineering miracles’ (2011: 167). Drawing on these reflections and insights from the energy humanities, blue humanities and infrastructure studies, I consider dams as concretizations that ‘harness, produce, materialise, and symbolise’ (neo)colonial power relations (Max Haiven (2013) ‘The dammed of the Earth: Reading the mega-dam for the political unconscious of globalization’, in Cecilia Chen, Janine MacLeod and Astrida Neimanis (eds) Thinking with Water, Montreal: McGill-Queen’s University Press). Thus, from this perspective, this infrastructural project could be seen not only as ‘Chinese invasion’ through the Belt and Road Initiative, but also an invasion of nature by the nation state, often constituted as the necessary means to pursue a view of national and regional integration towards globalized modernity. Finally, I discuss an invasion of the dominant narrative by resistance, turning attention to the anti-damming intersectional and coalitional work in the Balkans, which includes protests, marches, forums, artistic interventions, and legal pressure aimed at stopping both local and the Chinese state-owned companies from dredging and blocking the rivers. Intervening in the normalized view of the extractive zone – the article argues – these acts of resistance form part of a broad struggle against what the anthropologist Anne Spice calls ‘invasive infrastructures’ (2018) that numerous communities are fighting against in the region (‘Fighting invasive infrastructures’, Environment and Society 9: 40–56).

THE NEW LAW ON MICRO BANKS AND WHAT IT WILL CHANGE IN THE FINANCIAL MARKET OF GEORGIA

Microfinance is the provision of financial services to low-income groups. By classical definition it contributes to the improvement of the socio-economic condition as well as financial self-sufficiency of the low-income costumer and improves their living standards. Today, microfinance institutions around the world serve up to 156 million borrowers and manage a loan portfolio of USD 187 billion (Impact Finance Barometer, 2022: 3). Formation of Georgian microfinance market began in the 1990s and was developed mainly with the same scenario as in Balkans, Eastern Europe and Central Asia. During the first 10 years after adoption of the new Law on Microfinance Organizations and commercialization of the industry, a rapid growth and fast development of the sector was recorded (2006-2016), which has been then changed by a negative trend and market decline. The main reasons of the crisis are: tighter regulation, market saturation, growing competition from commercial banks, over-indebtedness, weak corporate governance, etc. In July 2022, the draft law on the activities of micro banks was registered in the Parliament of Georgia, according to which a new financial institution focused on lending to entrepreneurial and agricultural activities - a micro bank - will enter the market from 2023. The draft law was prepared based on the recommendation of the International Monetary Fund, which advised the National Bank to introduce a micro bank as a new institutional form (International Monetary Fund, 2020: 19). As a result of the law, 4 types of financial institutions will be presented in the financial market of Georgia since 2023: commercial banks, micro banks, microfinance organizations and loan issuing entities. The new regulatory framework should give microbanks the following advantages over the current status of MFIs: The maximum loan amount per borrower will be increased from GEL 100,000 to GEL 1 million, which allows microbanks to actively enter the SME lending segment, retain good borrowers, grow faster faster in the market and compete with banks. Having the right to mobilize the deposits, microbanks will be able to better diversify their funding sources, reduce the cost of local currency borrowing (based on savings in hedging) and, accordingly, reduce the interest rate on loans for thier clients, which will also increase their competitiveness with banks. By offering bank account services, microbanks will be able to provide customers with an almost full range of banking services. After legally differenciating from “consumption” and “pawnshop” type of financial institutions, microbanks will be able to attract more investments from responsible and reputable international financial institutions. At the same time, the new draft law contains certain potential risks that need to be properly assessed and analyzed: The increase of loan size limit from 100,000 to 1 million GEL is a good for portfolio growth. However, most companies lack the experience and qualification to properly manage risks of such large loans. Past experience also confirms that the worst portfolio quality and problem loans MFIs have in large loans (over GEL 10,000). Administration of the article, according to which at least 70% of the loans of a microbank must be disbursed for business purposes, seems very difficult. As of today practically no MFIs can meet this criteria. Adding the new products (deposits, account management) requires a high-quality core banking systems and automation of many processes. Consequently, microbanks will have to mobilize additional financial and human resources to build this infrastructure, which may take several years and entail significant costs. In conclusion, it can be said that the draft law is likely to have a positive impact on the financial sector. Competition in the financial sector will increase, which will lead to the provision of better quality and diverse financial services to customers.

The effects of department of Veterans Affairs medical centers on socio-economic outcomes: Evidence from the Paycheck Protection Program.

Do medical facilities also help advance improvements in socio-economic outcomes? We focus on Veterans, a vulnerable group over the COVID-19 pandemic who have access to a comprehensive healthcare network, and the receipt of funds from the Paycheck Protection Program (PPP) between April and June as a source of variation. First, we find that Veterans received 3.5% more loans and 6.8% larger loans than their counterparts (p < 0.01), controlling for a wide array of zipcode characteristics. Second, we develop models to predict the number of PPP loans awarded to Veterans, finding that the inclusion of local VA medical center characteristics adds almost as much explanatory power as the industry and occupational composition in an area and even more than the education, race, and age distribution combined. Our results suggest that VA medical centers can play an important role in helping Veterans thrive even beyond addressing their direct medical needs.

Efficacy of Peer-to-Peer Education for Emergency Medicine Resident Financial Literacy: Curriculum Development Study.

Early career physicians are under enormous stress from rigorous academic demands and financial insecurity due to increasingly large loan burdens and stagnant income. There are no institutionally required training programs to educate professionals on financial pitfalls or strategies for overcoming these burdens. Fiscal ignorance leaves them in a vulnerable position to be taken advantage of often, at great personal cost. Using a cross-sectional, convenience sample of emergency medicine residents at a single center, we evaluated the benefit of a six-month curriculum on financial education. Focusing on topics that were most pertinent early in medical careers, we assessed the utility of a six-lecture series totaling three hours of educationon fundamental financial literacy. Lectures were given by a single educatorwith no formal financial background in the following areas: general principles, student loans, retirement accounts, basic taxes, real estate, and insurance. Using pre-test and post-test information on 55 residents, financial literacy, as assessed by a 24-question multiple-choice survey, increased from 50% to 62% (p=<.001). Subgroup analysis was also performed within each financial category as well as by postgraduate year (PGY) of training. Raw data of individual percentages achieving specific financial milestones demonstrated an objective increase in the number of residents contributing to retirement accounts, creating an emergency fund,and establishing student loan repayment plans after the curriculum. Programs can institute sufficient financial literacy education for trainees that covers financial foundations. These programs can be taught without financial professional expertise or long hours of didactics.

A New Credit and Loan Lending Strategy and Credit in Banking Systems: An Evolutionary Game Theory Approach

In this paper, authors offer one novel mathematical model of credit lending to customers based on evolutionary game theory, and the model presents an efficient and realistic approach. The purpose of the article is to examine the evolutionary game between banks and customers for granting facilities and credit. Authors assumed that customers are divided into two types. The first type of customers includes individuals or small and medium enterprises (SME), applying for microloans from the bank. The second type of customers includes corporate banking or large enterprises, applying for large loans from the bank. The relationship between the bank and the customers is a double-sided problem. Banks and customers may trust each other or want to behave opportunistically. The results show that the game has two equilibriums, and the optimal equilibrium, which is the best-case scenario, occurs when customers and bank players tending to keep “honest” and to “credit,” respectively. Authors used the evolutionary stable strategy to express the parameters that affect these interactions, and by adjusting some of these parameters, authors move the equilibrium towards the optimal solution of the game. Also, by adjusting these parameters, banks can gain more profitability.

The distributional effects of student loan forgiveness

We study the distributional consequences of student debt forgiveness in present value terms, accounting for differences in repayment behavior across the earnings distribution. Full or partial forgiveness is regressive because high earners took larger loans, but also because, for low earners, balances greatly overstate the benefits of debt cancellation. Consequently, forgiveness would benefit the top decile as much as the bottom three deciles combined. Enrolling households who would benefit from income-driven repayment is less expensive and distributes more funds to lower-income households.

Minimizing the Repayment Cost of Federal Student Loans

Federal student loans are fixed-rate debt contracts with three main special features: (i) borrowers can use income-driven schemes to make payments proportional to their income above subsistence; (ii) after several years of being in good standing, the remaining balance is forgiven but taxed as ordinary income; and (iii) accrued interest is simple, i.e., not capitalized. For a very small loan, the cost-minimizing repayment strategy dictates maximum payments until full repayment, forgoing both income-driven schemes and forgiveness. For a very large loan, the minimal payments allowed by income-driven schemes are optimal. For intermediate balances, the optimal repayment strategy may entail an initial period of minimum payments to exploit the noncapitalization of accrued interest, but when the principal is being reimbursed maximal payments always precede minimum payments. Income-driven schemes and simple accrued interest mostly benefit borrowers with very large balances.

Introduction

Introduction Rachel Bernstein (bio) [End Page 1] Over the last decade, China's presence on the global stage has shifted dramatically: the country is now an economic powerhouse and increasingly influential in international organizations. As China rises, questions also arise pertaining to its strategic objectives toward many regions and in many domains. China appears to be seeking a "loose, partial, and malleable" hegemony over the global South—making the African continent a strategic priority for Beijing.1 This Asia Policy roundtable is a result of a current research initiative at the National Bureau of Asian Research, "Into Africa: China's Emerging Strategy," which aims to better understand China's strategic ambitions in Africa and assess how the continent fits into China's envisioned global order. The first three reports in this project to date have examined China's expansion into Africa from Beijing's perspective, often relying on Chinese-language sources to draw conclusions and analyze China's strategy.2 Yet, only looking at Beijing's viewpoint to get a fuller grasp on China-Africa relations would be a gross oversight that would provide an incomplete impression of China's engagement with the continent. Africa is a continent with 54 countries and a population of more than 1.3 billion people. China's engagement with the continent, of course, does not have the same level of impact or influence in all these countries, and not all states share the same opinion regarding China's presence. This roundtable seeks to share, highlight, and examine African perspectives regarding China's engagement with and influence on the continent. The essays here provide both regional and functional case studies examining different facets of the China-Africa relationship from the perspective of African [End Page 2] states, ranging from medical diplomacy and infrastructure development to smart cities in Kenya and the Digital Silk Road to local responses to China's growing influence and image campaigns in Zambia and Mauritius. Cobus van Staden evaluates China's medical diplomacy as the Covid-19 pandemic becomes endemic. While China's mask diplomacy in the early phases of the pandemic was effective and garnered positive responses, its later vaccine diplomacy suffered setbacks. Although Beijing appeared to overpromise and underdeliver, he concludes that vaccine and medical diplomacy can be considered a diplomatic victory for China, compared to the West's disappointing and underwhelming response. Looking at another area of diplomacy and outreach, Mandira Bagwandeen discusses China's infrastructure investments and application of the Belt and Road Initiative (BRI) in African countries as well as key outcomes from the Eighth Forum on China-Africa Cooperation (FOCAC) in November 2021. Amid accusations of debt-trap diplomacy and the financial pressures of the Covid-19 pandemic, she finds that China has demonstrated some willingness to negotiate debt-relief measures with African states. Discussions at FOCAC, however, indicated that China intends to begin re-directing its development assistance away from financing infrastructure development through large loans and toward trade facilitation. Also under the BRI umbrella is the Digital Silk Road, which is focused on improving states' infrastructure for information and communications technology and digital capabilities. As Ovigwe Eguegu explains, the Digital Silk Road is attractive to many African governments, including Ethiopia, Senegal, Gambia, and Zimbabwe, due to China's emphasis on digital sovereignty, which aligns with their development priorities. However, obstacles, such as a lack of digital infrastructure, still must be overcome before the Digital Silk Road becomes fully popularized in Africa. Bulelani Jili also addresses technology development in Africa, focusing particularly on smart cities in Kenya as a case study. He argues that China's "no strings attached" lending practices, especially for technology development, create opportunities for technology to be abused in societies where few data and privacy regulations exist. Jili asserts that it is not necessarily the sharing of the technologies that is worrisome, but the local governance conditions that can enable unjust surveillance practices in smart cities and using smart technologies. Obert Hodzi examines the effect of China's rise and presence in Africa on democracy and development, looking specifically at Zimbabwe, Rwanda, and Ethiopia. He argues that while China does not promote [End Page 3] its authoritarian model, by highlighting...

The interrelationships between bank profitability, bank stability and loan growth in Southeast Asia

The purpose of this study is to examine the relationship between bank profitability, bank stability, and loan growth may exist in Southeast Asia, including a sample of 79 listed banks in five countries in Southeast Asia (ASEAN-5) from 2006 to 2019. Using a simultaneous equations model (SEM) with the generalized method of moments is used to examine the links bank profitability, bank stability and loan growth. The findings show a two-]way relationship between these variables. More specifically, bank profitability and stability are positively related. Bank stability and loan growth are inversely connected. Furthermore, the findings demonstrate that bank profitability and loan growth are positively related. These findings, however, suggest a trade-off in banks’ pursuit of large loan growth. Our findings, however, have implications for bank supervisors, policymakers, and bank managers.

The U.S.-China Rivalry in Africa: Challenges and Prospects

In recent years the African continent, possessing a significant resource, economic and demographic potential, has become a scene of the growing rivalry between China and the United States. On the basis of a wide range of primary sources and recent researches, the author provides an in-depth analysis of both the current state and prospects for interaction between the two powers in Africa. The first section examines the key areas and features of China’s economic activities across the African continent, their trends and scope. The author shows, that among the factors that contributed to the strengthening of the PRC’s economic position in the region was its willingness to provide large loans and take part in ambitious infrastructure projects without imposing political conditions and without interfering in the internal affairs of African states. Such an approach allowed China to supersede the US in a number of sensitive areas (trade, mining of rare earth elements, humanitarian cooperation), as well as to gain the diplomatic support of African states, primarily within the UN. The second section examines ideological and military-political rivalry between the PRC and the United States in Africa. The author emphasizes the lack of consensus in the U.S. expert community on China’s readiness and desire to escalate the Cold War-like confrontation with the United States in Africa. The African states are not prepared for such confrontation either. However, the author concludes that the competition between China and the United States in Africa does not necessarily imply only the logic of confrontation. It is possible to find some common ground, for example, in developing market relations, promoting infrastructure projects, combating piracy, expanding healthcare facilities in the African states, etc. According to the author, such an approach could prioritize the issues of peace and the development of the African peoples.

Customer concentration and bank loan contracting: evidence from China

ABSTRACT This study uses hand-collected data regarding bank loan terms for Chinese listed firms to investigate whether and how a concentrated customer base affects bank loan contracting. We find that a more concentrated customer base reduces suppliers’ credit risk, which results in more favorable bank loan contracting terms (i.e. lower interest rates, longer maturities, and larger loan sizes). Furthermore, we provide evidence that increased operational efficiency, reduced information risk and default risk are possible channels through which customer concentration reduces bank loan contracting costs. The results are robust to a set of additional tests. Overall, our findings document the benefits of customer concentration in developing countries such as China and reveal how this benefit is priced into bank loan contract terms.

Financial access and women's role in household decisions: Empirical evidence from India's National Rural Livelihoods project

Government programs supporting self help groups (SHGs) generally target women on the assumption that doing so enhances women's decision-making. The empirical evidence, however, is mixed. We advance and test one explanation: the loan amounts offered by most SHGs may be too small to impact women. Our analysis is based on SHGs developed under India's National Rural Livelihoods Mission, a program that supported both small loans from internal savings and larger loans through Community Investment Funds (CIFs). Exploiting variation in their phasing and amount, we document a large effect of CIFs on women's decision-making and on intra-household allocations.