Premium
Microfinance asymmetric information problems in Cameroon
Author(s) -
Tche Jacob
Publication year - 2009
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.1503
Subject(s) - microfinance , liberalization , financial intermediary , monopolistic competition , financial system , intermediation , information asymmetry , economics , business , imperfect , monetary economics , international economics , finance , market economy , economic growth , monopoly , linguistics , philosophy
In recent financial liberalisation debates, increasing attention has been paid to the role of financial intermediation on the economy. Little research addressing the behaviour of bank lending interest rates under a financial liberalisation system has been articulated. This paper, therefore, draws a parallel between a completely liberalised microfinance and independent banks under financial liberalisation to indicate that in the presence of imperfect information there is a high probability of banks exhibiting a monopolistic behaviour. Copyright © 2008 John Wiley & Sons, Ltd.