@article{Hering:244780,
      recid = {244780},
      author = {Hering, Imke and Mußhoff, Oliver},
      title = {LOAN DEFAULTS IN MICROFINANCE - FOREWARNED IS FOREARMED},
      address = {2016},
      number = {873-2016-60931},
      pages = {13},
      year = {2016},
      abstract = {Based on a rich dataset of an Azerbaijani microfinance  institution, we analyze what a lender can pre-determine  from own collected repayment records on clients and how  lending conditions are adjusted for the knowledge gains. At  the same time, the repayment performances and lending  policies between agricultural and non-agricultural clients  are differentiated. Our results confirm a positive  relationship between previous delays and recidivism, which  is even enhanced by the severity of the previous overdue  payment. With respect to consequences of previous delay, we  find that the borrower faces an increase in loan volume  rationing in the subsequent loan. All in all, we state that  banks’ internal repayment records can contribute to the  customer risk assessment.},
      url = {http://ageconsearch.umn.edu/record/244780},
      doi = {https://doi.org/10.22004/ag.econ.244780},
}