Sowing the Seeds for Rural Finance : The Impact of Support Services for Credit Unions in Mexico
This paper studies the impact of a program that provides grants for technical assistance on the interest rates and outreach of credit unions in Mexico. Credit unions financing rural borrowers received grants in different years. The study uses prope...
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World Bank, Washington, DC
2018
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Online Access: | http://documents.worldbank.org/curated/en/591351529583939227/Sowing-the-seeds-for-rural-finance-the-impact-of-support-services-for-credit-unions-in-Mexico http://hdl.handle.net/10986/29936 |
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okr-10986-299362021-06-08T14:42:46Z Sowing the Seeds for Rural Finance : The Impact of Support Services for Credit Unions in Mexico Bruhn, Miriam Reddy, Rekha Ruiz Ortega, Claudia CREDIT UNION RURAL FINANCE TECHNICAL ASSISTANCE ACCESS TO FINANCE SMALL AND MEDIUM ENTERPRISES PROPENSITY SCORE MATCHING LENDING INTEREST RATE RISK MANAGEMENT NON-PERFORMING LOANS This paper studies the impact of a program that provides grants for technical assistance on the interest rates and outreach of credit unions in Mexico. Credit unions financing rural borrowers received grants in different years. The study uses propensity score matching and relies additionally on the timing of the grants to identify effects. The analysis shows that the program lowered lending interest rates by up to 2.6 percentage points (from a pre-program average of 17.8 percent). This drop appears to be due to lower operating costs and better risk management, as reflected in a lower nonperforming loan ratio. The program also raised credit unions' returns on assets and significantly increased the value of their loan portfolio. 2018-06-28T14:27:37Z 2018-06-28T14:27:37Z 2018-06 Working Paper http://documents.worldbank.org/curated/en/591351529583939227/Sowing-the-seeds-for-rural-finance-the-impact-of-support-services-for-credit-unions-in-Mexico http://hdl.handle.net/10986/29936 English Policy Research Working Paper;No. 8483 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Mexico |
repository_type |
Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English |
topic |
CREDIT UNION RURAL FINANCE TECHNICAL ASSISTANCE ACCESS TO FINANCE SMALL AND MEDIUM ENTERPRISES PROPENSITY SCORE MATCHING LENDING INTEREST RATE RISK MANAGEMENT NON-PERFORMING LOANS |
spellingShingle |
CREDIT UNION RURAL FINANCE TECHNICAL ASSISTANCE ACCESS TO FINANCE SMALL AND MEDIUM ENTERPRISES PROPENSITY SCORE MATCHING LENDING INTEREST RATE RISK MANAGEMENT NON-PERFORMING LOANS Bruhn, Miriam Reddy, Rekha Ruiz Ortega, Claudia Sowing the Seeds for Rural Finance : The Impact of Support Services for Credit Unions in Mexico |
geographic_facet |
Latin America & Caribbean Mexico |
relation |
Policy Research Working Paper;No. 8483 |
description |
This paper studies the impact of a
program that provides grants for technical assistance on the
interest rates and outreach of credit unions in Mexico.
Credit unions financing rural borrowers received grants in
different years. The study uses propensity score matching
and relies additionally on the timing of the grants to
identify effects. The analysis shows that the program
lowered lending interest rates by up to 2.6 percentage
points (from a pre-program average of 17.8 percent). This
drop appears to be due to lower operating costs and better
risk management, as reflected in a lower nonperforming loan
ratio. The program also raised credit unions' returns
on assets and significantly increased the value of their
loan portfolio. |
format |
Working Paper |
author |
Bruhn, Miriam Reddy, Rekha Ruiz Ortega, Claudia |
author_facet |
Bruhn, Miriam Reddy, Rekha Ruiz Ortega, Claudia |
author_sort |
Bruhn, Miriam |
title |
Sowing the Seeds for Rural Finance : The Impact of Support Services for Credit Unions in Mexico |
title_short |
Sowing the Seeds for Rural Finance : The Impact of Support Services for Credit Unions in Mexico |
title_full |
Sowing the Seeds for Rural Finance : The Impact of Support Services for Credit Unions in Mexico |
title_fullStr |
Sowing the Seeds for Rural Finance : The Impact of Support Services for Credit Unions in Mexico |
title_full_unstemmed |
Sowing the Seeds for Rural Finance : The Impact of Support Services for Credit Unions in Mexico |
title_sort |
sowing the seeds for rural finance : the impact of support services for credit unions in mexico |
publisher |
World Bank, Washington, DC |
publishDate |
2018 |
url |
http://documents.worldbank.org/curated/en/591351529583939227/Sowing-the-seeds-for-rural-finance-the-impact-of-support-services-for-credit-unions-in-Mexico http://hdl.handle.net/10986/29936 |
_version_ |
1764470849433239552 |