tailieunhanh - Guarantee funds in microfinance: A comparative analysis

It is known that micro and small enterprises (often unbankable) have usually difficulties in the access to the financial system; in order to facilitate their credit access in many countries different kind of mutual guarantee schemes and institutions generally grant different typologies of guarantees. | Journal of Applied Finance Banking vol. 3 no. 6 2013 161-199 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2013 Guarantee Funds in Microfinance A Comparative Analysis Pasqualina Porretta1 Paola Leone2 and Sabrina Leo3 Abstract It is known that micro and small enterprises often unbankable have usually difficulties in the access to the financial system in order to facilitate their credit access in many countries different kind of mutual guarantee schemes and institutions generally grant different typologies of guarantees. Mutual guarantee schemes and institutions can significantly contribute to facilitate the credit access of micro and small enterprises by reducing the information asymmetries between the lender and the borrower and in some cases by decreasing the cost of funding. In this perspective this research aims at offering a comprehensive comparative analysis of the most significant models of micro credit sector and guarantee funds adopted in two European country Italy and Spain and in two African countries Morocco and Tunisia .The perspective adopted in the paper is finally addressed to highlight the strength and weaknesses of the different typology of microcredit guarantee system in order to point out some regulatory or operative solutions which once known may improve the economic sustainability of the microcredit sector institutions and ultimately can contribute to really facilitate the access to credit for microenterprises. JEL classification numbers G2 G3 Keywords Guarantee Funds Microfinance Microcredit institutions 1 Sapienza University of Rome Senior Lecturer in Risk Management for Banks and Insurances Management Department Section Banking and Finance Faculty of Economy Italy. 2Sapienza University of Rome Professor in Economy of Financial Intermediaries Management Department Section Banking and Finance Faculty of Economy Italy. 3Sapienza University of Rome Research Fellow in Financial Intermediaries Management Department Section Banking