Asymmetric Information in Rural Financial Markets and Interlinking of Transactions Through Self-Help Groups

JPD 1989 Vol. XVI No. 1-e

1989

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One of the issues contending the rural borrowers, who are composed of small entrepreneurs, fishermen and farmers, is the access to financial services of formal financial institutions. With this fact on hand, this article discusses the issue within the framework of asymmetry of information existing in rural financial markets. It shows that the observed interlinking transactions between banks and various self-help groups provides a mechanism to ensure access to bank credit.

Citations

This publication has been cited time(s).

Saldana, Cesar G, 2000 "Assessing the economic value of credit guarantees" , Philippine Institute for Development Studies
Kumar, Dr.B. Pradeep, 2011 "Financial exclusion: A theoretical approach" , University Library of Munich, Germany
Kumar, Dr.B. Pradeep, 2016 "Institutional response to the problem of access to finance: Evidence from the tribal economy of Kerala" , University Library of Munich, Germany
Kumar, Dr.B. Pradeep, 2014 "Access to finance and human rights" , University Library of Munich, Germany
Kumar, Dr.B. Pradeep, 2017 "Financial vulnerability among tribes in rural areas: Certain observations from a study" , University Library of Munich, Germany
dela Cruz, Alma, 2007 "Contractual arrangements in agriculture (Northern and Central Luzon component)" , East Asian Bureau of Economic Research
Dela Cruz, Alma, 2007 "Contractual arrangements in agriculture (Northern and Central Luzon component)" , Philippine Institute for Development Studies

Contributor

Philippine Institute for Development Studies

Authors

Llanto, Gilberto M.

Keywords

financial sector; financial system; credit program; rural sector; borrowing behavior; financial services; credit access