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Saturday, August 1, 2020 | History

2 edition of Do peer group members outperform individual borrowers? found in the catalog.

Do peer group members outperform individual borrowers?

Rafael Gomez

Do peer group members outperform individual borrowers?

a test of peer group lending using Canadian micro-credit data

by Rafael Gomez

  • 68 Want to read
  • 10 Currently reading

Published by Bank of Canada in Ottawa .
Written in English

    Subjects:
  • Microfinance -- Ontario -- Toronto.,
  • Microfinance -- Nova Scotia -- Halifax Regional Municipality.,
  • Loans.,
  • Microfinance -- Nouvelle-Écosse -- Halifax Regional Municipality.

  • Edition Notes

    Statementby Rafael Gomez and Eric Santor.
    SeriesBank of Canada working paper -- 2003-33, Working paper (Bank of Canada) -- 2003-33.
    ContributionsBank of Canada.
    The Physical Object
    Paginationv, 49 p. ;
    Number of Pages49
    ID Numbers
    Open LibraryOL19109211M

    peer group borrowers actually outperform individual borrowers While it is true that closer monitoring and increased effort is inherently difficult to measure, the consequences of these positive peer group effects should be easier to observe; group members should outperform individual borrowers in terms of repayment success, if. Peer-to-peer lending, also abbreviated as P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders with borrowers. Peer-to-peer lending companies often offer their services online, and attempt to operate with lower overhead and provide their services more cheaply than traditional financial institutions.

      For group accountability to become ingrained in the group culture, the individual members and the group, as a whole, have to accept it as their responsibility. If this is not the dynamic in your peer group today, give it a try and, over time, watch peer group accountability improve and see how everyone starts to achieve even better results. Ron Egan, CFA, classifies firms in the transportation industry in peer groups that include airlines and bus operators. Egan learns that one of the airlines, Acme, derives half its revenue from its Acme Bus Lines subsidiary. Egan adds Acme to his peer group for bus operators while continuing to include Acme in his peer group for airlines.

    Contextual translation of "outperform" into French. Human translations with examples: MyMemory, World's Largest Translation Memory.   What happens though in the group lending model is that instead of lending directly to individual borrowers, banks lend to groups of borrowers, who are jointly liable for a single loan. In the developing world, group lending served several mutually reinforcing purposes that have been well documented both historically and through economic game.


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Do peer group members outperform individual borrowers? by Rafael Gomez Download PDF EPUB FB2

E vidence to suggest that peer group members actually outperform individual borro wers. Do peer group members outperform individual borrowers?: a test of peer group lending using Canadian micro-credit data Author: Rafael Gomez ; Eric Santor ; Bank of Canada.

The authors find empirical evidence that group lending does indeed lower borrower default rates more than conventional individual lending, and that this effect operates through the dual channels of selection into the peer lending program and, once inside the program, greater group borrower effort.

peer group effects are easier to observe: group members should outperform individual borrowers in terms of repayment success (holding all else constant). 6 We seek to measure this basic outcome by: Microfinance institutions now serve over 10 million poor households in the developing and developed world, and much of their success has been attributed to their innovative use of peer group lending.

There is very little empirical evidence, however, to suggest that group lending schemes offer a superior institutional design over lending programs that serve individual : Rafael Gomez and Eric Santor.

BibTeX @MISC{Gomez03dopeer, author = {Rafael Gomez and Eric Santor}, title = {Do Peer Group Members Outperform Individual Borrowers. A Test of Peer Group Lending Using Canadian Micro-Credit Data}, year = {}}. Peer groups diversify risk inherent in individual borrowers with women only groups having higher credit quality levels as compared to men only groups.

Women and their respective peer groups are more stable with less variability as compared to men. Financial technology providers can incorporate the wide array of soft information to lend to low income earners through mobile based peer groups.

Do Peer Group Members Outperform Individual Borrowers. A Test of Peer Group Lending Using Canadian Micro-Credit Data By Rafael Gomez, Eric Santor Issn, Rafael Gomez, Eric.

Do Peer Group Members Outperform Individual Borrowers. A Test of Peer Group Lending Using Canadian Micro-Credit Data Staff Working Papers, Bank of Canada View citations (14) Financial Constraints and Investment: Assessing the Impact of a World Bank Loan Program on Small and Medium-Sized Enterprises in Sri Lanka.

Do peer group members outperform individual borrowers. A test of peer group lending using Canadian micro-credit data.” Bank of Canada Working (). Group lending under asymmetric information.” ().

Group lending, local information and peer selection.”Author: Hisaki Kono. Free-riding incentives may depend crucially on the size of the borrowing groups. In practice, it is unclear how far group size affects repayment rates. FINCA, the organization which pioneered the village banking concept, lends to large borrower groups of between 10 and 50 members, and boasts repayment rates of 96%.

Rafael Gomez & Eric Santor, "Do Peer Group Members Outperform Individual Borrowers?A Test of Peer Group Lending Using Canadian Micro-Credit Data," Staff Working PapersBank of Canada.; Powell, Melanie & Ansic, David, "Gender differences in risk behaviour in financial decision-making: An experimental analysis," Journal of Economic Psychology, Elsevier, vol.

18(6), Cited by: The Effect of Social Capital on Group Loan Repayment: Evidence from Artefactual Field Experiments. By Alessandra Cassar, (). Do Peer Group Members Outperform Individual Borrowers.

A Test of Peer Group Lending Using Canadian Microcredit Data,’ Bank of Canada Working Peer Group. Hidden Markov model classified the low income earners into credit risk profiles wih a view of understanding the role of groups in low income group lending.

Peer groups diversify risk inherent in individual borrowers with women only groups having higher credit quality levels as compared to men only : Davis Bundi Ntwiga, Carolyne Ogutu, Michael Kiura Kirumbu, Patrick Weke.

Do Peer Group Members Outperform Individual Borrowers. A Test of Peer Group Lending Using Canadian Micro-Credit Data Staff Working Papers, Bank of Canada View citations (14) Segmentation, Switching Costs and the Demand for Unionization in Britain CEP Discussion Papers, Centre for Economic Performance, LSE View citations (9).

group-lending programs, credit cooperatives, and rotating saving and credit associ-ations, to overcome these problems. In this paper we focus on group-lending programs under which borrowers who cannot offer any collateral are asked to form small groups.

Group members are held jointly liable for the debts of each other. 3 Formally speaking, what. Do peer group members outperform individual borrowers?: a test of peer group lending using Canadian micro-credit data / by Rafael Gomez and Eric Santor.

HG C3 G66 Building inclusive financial sectors for development. Vulnerability of Microfinance to Strategic Default and Covariate Shocks:Evidence from Pakistan. Do Peer Group Members Outperform Individual Borrowers. A Test of Peer Group Lending Using Canadian Micro-credit Data,” Bank of Canada Working ().

Group Lending, Local Information and Peer Selection,”Author: Takashi Kurosaki and Hidayat Ullah Khan. The main results are: (i) borrowers may be better off in heterogeneous groups; and (ii) a heterogeneous group equilibrium is possible when individual or homogeneous group equilibria do not exist.

View. individual group-members, but the whole group is jointly liable for the repayment of each member’s loan. We focus on two features of the contractual method used by the Grameen Bank and similar lending institutions to explain their excellent repayment record: the self selection of group members, and joint liability.4 Under joint.

Peer Perform: An investment rating used by analysts when given security is expected to provide returns that are consistent with those of other companies within its sector. A peer perform is a Author: Will Kenton.Giné, X., and Karlan., D., Peer monitoring and enforcement: Long term evidence from microcredit lending groups with and without group liability.

Working Paper. Gómez, Rafael, and Eric Santor., Do peer group members outperform individual borrowers? A test of peer group lending using Canadian micro-credit data. Peer Group: A peer group is a group of individuals or entities that share similar characteristics and interests.

Peer groups, in the case of people, have .