Credit risk in microcredit: how does gender matter?
Mathias Schmit and Helena Marrez
Savings and Development Vol. 34(2010), No. 3, pp. 369-388
This paper is the first to analyze the credit risk of a microfinance institution based on the loan portfolio of a leading Maghrebian MFI, both in terms of number of clients served and of portfolio size. This allows us to work with a proprietary data set of 1,144,770 contracts issued between 1997 and 2007. Using a resampling technique, we estimate the probability density function of losses and value-at-risk measures for a portfolio of loans granted to female and male microfinance clients. Results show similarities and differences in credit risk between male and female clients with implications in terms of capital requirements.2010 XXXIV 3
Contributors: Marrez, Helena Schmit, Mathias
Keywords: Africa, Capital requirement, Credit risk, Gender study, Microfinance, Morocco