Seminar Series

2021 - 2022

Speaker: Hubert Tchakoute Tchuigoua (Kedge).

Title: “Microloan Rates, Business Cycle and Transmission Channel”

joint with H Hessou (U of Sherbrooke, Quebec).

Date: Thursday, February 3rd at 12h30 (Paris Time).

Abstract: This study aims to determine whether the loan pricing (interest rate) that microfinance

institutions (MFIs) charge responds to the business cycle. Using an initial sample of 18,626 MFI-year observations for 2,764 MFIs from 123 countries over the period 1999–2018, we find a negative relationship between microfinance interest rates and the business cycle. Further analysis, however, suggests that the negative relation documented only concerns forprofit MFIs whose characteristics are close to conventional banks. This indicates that MFIs, mainly for-profit MFIs are likely to increase their real rate during times of stress. An analysis of potential attenuation mechanisms of the cyclical effects suggests that MFIs using proximity lending methodology, or those that benefit from subsidies, are less cyclical and could better intermediate through the cycle. Our findings are robust to a series of specifications, including the dynamic GMM estimation and propensity score matching (PSM).

You will find the paper attached.

You are cordially invited to participate to the seminar, which will take place in Room 327, Lascrosses building, if the sanitary situation permits it.

For those who will not be in the room, please find the zoom link below:

https://tbs-education-fr.zoom.us/j/83853778209?pwd=WmJKbnM0TFFzNFBKcFRuUVVHc3Qxdz09

Meeting ID: 838 5377 8209

Passcode: 011829

If the sanitary situation does not permit the seminar to take place in presence, it will take place online and you will receive a mail announcing it beforehand.

For more information, please contact: Pierre Mella-Barral p.mella-barral@tbs-education.fr