Microfinance development in Armenia: Sectoral characteristics and problems

Khachatryan, Knar; Avetisyan, Emma

doi:10.1002/jsc.2169

Cited by 9 publications

(8 citation statements)

References 39 publications

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“…Microfinance sector development in Armenia can be grouped into several stages (Khachatryan & Avetisyan, 2017). Right after Armenia declared its independence in 1991, many international organizations and networks (for example, FINCA, OXFAM, UMCOR, World Vision) and religious charities (for example, Catholic Relief Services) initiated development programs in the country.…”

Section: Microfinance In Armenia and Sef Internationalmentioning

confidence: 99%

Comparison of econometric and deep learning approaches for credit default classification

et al. 2021

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The deep-learning model outperforms the conventional structured models developed by using econometric techniques. Instead, econometric techniques provide an important insight into specific factors and their contribution to default probability. Using data from an Armenian universal credit organization that contains financial and nonfinancial variables of more than 9,000 borrowers of agriculture loans from 2012 to 2017 years, we compare deep neural networks' performance against conventional and widely used econometric techniques. Delays on past loans, together with loan size and currency, are major factors contributing to loan default probability prediction accuracy. The set of statistically significant or important variables differs between econometric and deep learning models proving that the latter can capture nonlinear relationships.

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Section: Microfinance In Armenia and Sef Internationalmentioning

confidence: 99%

Comparison of econometric and deep learning approaches for credit default classification

et al. 2021

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“…The regulatory support (Britzelmaier, Kraus, & Xu, 2013), the control of corruption, the need for competition, and the use of rating agencies (Halouani & Boujelbène, 2015), credit bureaus (Shankar, 2015), or even “mystery shopping” (Chan & Lin, 2015) can all help in the supervision and development of microfinance organizations. However, inappropriate regulation can push microcredit organizations to increase outreach and inclusion but with a purely commercial logic (Khachatryan & Avetisyan, 2017). Religious affiliation has not been found to impact the performance of microfinance institutions (Djan & Mersland, 2017).…”

Section: Research Directionsmentioning

confidence: 99%

Microfinance and financial inclusion: Challenges and opportunities

Milana

Ashta

2020

Strategic Change

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Lifting the poor from poverty through financial and social inclusion is the ultimate target and raison d'etre of microfinance. As the most recent literature has recognized, microfinance institutions have economically worked well in operating microcredit, but the aim of raising the living standard of their indigent clients has not been generally met. The expected encouragement of entrepreneurship from microcredit is still not detected in the empirical data, let alone women's social integration in working activities. The articles collected in this thematic issue bring new empirical elements of discussion pointing to many aspects of the social divides and the inequalities that plague the emerging countries. This overview article recalls the main questions that are still open and the framework of topics discussed in this thematic issue.

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“…Also, questions related to the role played by regulation in the increased profit orientation of microfinance institutions have been left aside. Indeed, the role of regulation aimed at ensuring the financial sustainability of microfinance institutions may push these MFIs to resort to practices targeted toward maximizing profits at the expense of the financial inclusion of the poor (Gallardo et al, 2005; Khachatryan & Avestisyan, 2017; Siwale & Okoye, 2017). This literature suggests the relevance of policy reviews aimed to accommodate the needs of the microfinance sector.…”

Section: Review Of the Literature On Microfinance Regulationmentioning

confidence: 99%

The development of microfinance in Cameroon: Focus on regulation

Singhe¹,

Louche

2020

Strategic Change

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While the microfinance regulations in Cameroon have a positive influence in professionalizing the microfinance sector, it seems to have also created hurdles for MFIs to fulfill their social mission of financial inclusion. The evolution of activities of the microfinance sector over the years led to changes in the regulatory environment through the establishment of new regulations that progressively professionalize the sector and controlled certain derives. Financial inclusion has been hindered by insufficient supervision and tight regulations in terms of board members' qualifications, loan documentation requirements, and provisioning and liquidity requirements. Regulations still need to reflect more the specificities of the microfinance sector and be matched with adequate supervision in order to achieve its dual role of financial inclusion and safeguarding the financial system. K E Y W O R D S cameroon, financial inclusion, microfinance regulation

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Microfinance development in Armenia: Sectoral characteristics and problems

Abstract: The heavy-handed regulation enforced a commercialization process and as a result pushed microfinance institutions towards a commercial logic. This commercial shift, in its turn, diminished the importance of the social component.

Cited by 9 publications

References 39 publications

Comparison of econometric and deep learning approaches for credit default classification

Comparison of econometric and deep learning approaches for credit default classification

Microfinance and financial inclusion: Challenges and opportunities

The development of microfinance in Cameroon: Focus on regulation

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