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    Home»Business»Case Studies

    Bank- Moneylender Credit Linkages: Theory and Practice

    ADITYABy ADITYANovember 20, 2022 Case Studies
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    Bank- Moneylender Credit Linkages: Theory and Practice
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    Abstract — This paper critically reviews proposals for banks and moneylenders to link together in disbursing credit to rural areas
    of developing countries.

    The linkages suggest that banks should compensate moneylenders according to the moneylenders ’ opportunity costs and information contribution. These mechanisms’ appeal lies in their self-equilibrating and self-sustaining character.

    With these attractive features, bank-moneylender linkages can emerge as a serious alternative to group lending-based microfinance.

    The paper also provides evidence-primarily from Indonesia on incentives similar to those suggested by the theoretical models. It concludes that with the appropriate regulation of informal lenders and with incentives provided to commercial banks, linkages
    provide an unexplored potential.

    Bank- Moneylender Credit Linkages: Theory and Practice

    Download the document in PDF form by visiting the Slideshare page.

    Note the study is from the year 2004.

    Bank and Money Lender Credit Linkages – A study- 46 Pages

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    ADITYA

      Aditya is a talented content writer with a passion for crafting engaging and informative content that resonates with readers. With 10 years of experience in the industry, he has honed his writing skills to produce high-quality content across a wide range of topics.

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