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dc.contributor.authorJoung-Hun Lee
dc.contributor.authorMarko Jusup
dc.contributor.authorBoris Podobnik
dc.contributor.authorYoh Iwasa
dc.date.accessioned2019-10-25T20:37:34Z
dc.date.available2019-10-25T20:37:34Z
dc.date.created2017-09-28 23:37
dc.identifieroai:doaj.org/article:0008a7051c75489bb4dbd8cd15fbe756
dc.identifier10.1371/journal.pone.0126447
dc.identifier1932-6203
dc.identifierhttps://doaj.org/article/0008a7051c75489bb4dbd8cd15fbe756
dc.identifier.urihttp://hdl.handle.net/20.500.12424/1517006
dc.description.abstractBy drawing analogies with independent research areas, we propose an unorthodox framework for mapping microfinance credit risk--a major obstacle to the sustainability of lenders outreaching to the poor. Specifically, using the elements of network theory, we constructed an agent-based model that obeys the stylized rules of microfinance industry. We found that in a deteriorating economic environment confounded with adverse selection, a form of latent moral hazard may cause a regime shift from a high to a low loan payment probability. An after-the-fact recovery, when possible, required the economic environment to improve beyond that which led to the shift in the first place. These findings suggest a small set of measurable quantities for mapping microfinance credit risk and, consequently, for balancing the requirements to reasonably price loans and to operate on a fully self-financed basis. We illustrate how the proposed mapping works using a 10-year monthly data set from one of the best-known microfinance representatives, Grameen Bank in Bangladesh. Finally, we discuss an entirely new perspective for managing microfinance credit risk based on enticing spontaneous cooperation by building social capital.
dc.languageEN
dc.publisherPublic Library of Science (PLoS)
dc.relation.ispartofhttp://europepmc.org/articles/PMC4422753?pdf=render
dc.relation.ispartofhttps://doaj.org/toc/1932-6203
dc.sourcePLoS ONE, Vol 10, Iss 5, p e0126447 (2015)
dc.subjectMedicine
dc.subjectR
dc.subjectScience
dc.subjectQ
dc.titleAgent-based mapping of credit risk for sustainable microfinance.
dc.typeArticle
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ge.identifier.legacyglobethics:11581271
ge.identifier.permalinkhttps://www.globethics.net/gel/11581271
ge.lastmodificationdate2017-09-28 23:37
ge.lastmodificationuseradmin@pointsoftware.ch (import)
ge.submissions0
ge.oai.exportid148650
ge.oai.repositoryid52
ge.oai.setnameLCC:Medicine
ge.oai.setnameLCC:Science
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ge.linkhttps://doaj.org/article/0008a7051c75489bb4dbd8cd15fbe756


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