New CERMi-CEB working paper by SOCENT researchers Anastasia Cozarenco, Marek Hudon and Ariane Szafarz available for download
A new CERMi-CEB working paper, entitled “What Type of Microfinance Institutions Supply Savings Products?”, by SOCENT researchers Anastasia Cozarenco, Marek Hudon and Ariane Szafarz is now available for download on the SOCENT website.
Recent evidence shows that the poor desperately need access to savings products. But despite this general consensus, microfinance institutions (MFIs) offering savings products are still under-studied. Using random-effect probit estimation on a dataset of 722 MFIs active over the 2005-2010 period, the authors try to identify the characteristics of those that collect voluntary savings. Their results suggest that these MFIs have received fewer subsidies than their credit-only counterparts. In other words, subsidies would crowd out micro-savings products, suggesting that donors generate negative externalities on product diversification.