Repayment performance in group-based credit programs in Bangladesh: An empirical analysis

摘要: Abstract This paper analyzes the repayment rates of 128 credit groups belonging to three group-based programs in Bangladesh: Association for Social Advancement (ASA), Bangladesh Rural Committee (BRAC), and Rangpur Dinajpur Service (RDRS). Using TOBIT analysis, specific tests are performed on following hypothesized determinants: group size, size loans, degree loan rationing, enterprise mix within groups, demographic characteristics, social ties status, occurrence idiosyncratic shocks. The concludes that if basic principles prudential banking adhered to, can be good even poor remote communities. important thing financial institutions is tailor services such it becomes worthwhile establish a profitable long-term association. In addition, more freedom members process formation recommended.