|
|
|
| Financial Leverage Regulation and Trade-offs between Sustainability and Outreach of Micro-credit Companies in China: Evidence from Dual-Regulation Quasi-experiment |
| ZHANG Longyao, YANG Jun, CHENG Enjiang
|
College of Finance, Nanjing Agricultural University;
Financial Research Institute, the People’s Bank of China;
Victoria Institute of Strategic Economic Studies, Victoria University |
|
|
|
|
Abstract Based on the successful experiences of microfinance institutions (MFIs) in many developing countries, China started micro-credit companies (MCCs) pilot reform since 2005. The reform allows private capital to establish MCCs in rural areas to create a formal vehicle for small and micro businesses in rural areas and adopts “central-local” dual-regulation framework for the first time which can be regarded as a quasi-experiment. Under duel-regulation framework, some provincial governments break the financial leverage restriction on MCCs, although the leverage ratio set by central government is limited to 0.5. Using a nationwide dataset of 457 MCCs, we examine how the financial leverage restriction affects the trade-off between sustainability and outreach. Controlling for the possible non-random assignment of restriction via treatment effects and instrumental variables regressions, we find evidence that there is no trade-off between sustainability and outreach to small-scale borrowers and rural clients for MCCs who break the leverage restriction. However, MCCs with financial leverage less than 0.5 instead tend to reduce both profitability and outreach and are shown to be riskier with a higher loan concentration.
|
|
Received: 10 April 2016
Published: 13 April 2018
|
|
|
|
|
| Cite this article: |
|
ZHANG Longyao,YANG Jun,CHENG Enjiang. Financial Leverage Regulation and Trade-offs between Sustainability and Outreach of Micro-credit Companies in China: Evidence from Dual-Regulation Quasi-experiment[J]. Journal of Financial Research,
2016, 432(6): 142-158.
|
|
|
|
| URL: |
| http://www.jryj.org.cn/EN/ OR http://www.jryj.org.cn/EN/Y2016/V432/I6/142 |
| [1] |
胡金焱和梁巧慧,2015,《小额贷款公司多重目标实现的兼顾性——来自山东省的证据》,《财贸经济》第5期,第59~70页。
|
| [2] |
胡颖毅,2013,《小额贷款公司的融资“瓶颈”及其资产收益权评估》,《改革》第6期,第135~143页。
|
| [3] |
焦瑾璞,2011,《要让民间资本进入微型金融领域》,《金融发展与监管》第4期,第17~18页。
|
| [4] |
李东荣,2011,《拉美小额信贷监管经验及对我国的启示》,《金融研究》第5期,第1~12页。
|
| [5] |
李直和朱忠明,2013,《中国小额贷款公司实践与发展》,中国发展出版社。
|
| [6] |
刘萍、孙天琦和张韶华,2008,《有关美国非吸收存款类放贷人(NDTL)的考察报告》,《西部金融》第9期,第11~17页。
|
| [7] |
马向荣,2014,《地方“金融办”职能定位与金融分层监管体系催生》,《改革》第2期,第59~66页。
|
| [8] |
吴晓灵,2012,《定格小额贷款公司》,《资本市场》第10期,第10~11页。
|
| [9] |
武志,2013,《非吸收存款类放贷机构的债券融资》,《中国金融》第4期,第75~76页。
|
| [10] |
袁吉伟,2013,《小额信贷机构资金来源和结构研究:国际经验及启示》,《农村金融研究》第5期,第69~74页。
|
| [11] |
周逢民,2012,《中央与地方政府金融监管模式选择》,《金融发展评论》第5期,第70~75页。
|
| [12] |
Armendáriz B., D’Espallier B., Hudon M. and Szafarz A., 2011.“Subsidy Uncertainty and Microfinance.” Universite Libre de Bruxelles CEB from ULB Working Papers No.11-014.
|
| [13] |
Christen Robert P., Timothy L., and Rosenberg R.,2003. “Guiding Principles for Regulation and Supervision of Microfinance.” Consultative Group to Assist the Poor.
|
| [14] |
Cull R., DemigucKunt A. and Morduch J. ,2007.“Financial Performance and Outreach: A Global Analysis of Leading Microbanks.” The Economic Journal, No.117,107~133.
|
| [15] |
Cull R., DemigucKunt A. and Morduch J.,2009. “Microfinance Meets the Market.” Journal of Economic Perspectives, No.23,167~192.
|
| [16] |
Cull R. ,2011.“The Effect of Regulation on MFI Profitability and Outreach”, World Development, No.39,949~965.
|
| [17] |
D’Espallier B., Guérin I. and Mersland R.,2013.“Women and Repayment in Microfinance.” World Development, No.39,758~772.
|
| [18] |
Hartarska.V and Nadolnyak D.,2007. “Does Rating Help Microfinance Institutions Raise Funds:Cross-country Evidence.” International Review of Economics and Finance, No.5,1207~1222.
|
| [19] |
Hermess N. and Lensink R.,2011. “Outreach and Efficiency of Microfinance Institutions.” World Development, No.39,938~948.
|
| [20] |
Keely, M.,1990. “Deposit Insurance, Risk and Market power in Banking.” American Economic Review,No.80,1183~1200.
|
| [21] |
Keeney, R. and Raiffa, H.,1976. “Decisions with Multiple Objectives.” Cambridge University Press.
|
| [22] |
Morduch, J.,1999.“The Microfinance Promise.” Journal of Economics Literature, No.37,1569~1614.
|
| [23] |
Navajas S. and Tejerina L.,2000. “Microfinance in Latin America and the Caribbean:Connecting Supply and Demand”,Inter-American Development Bank.
|
| [24] |
Paxton J. and Cuevas C.,2002. “Outreach and Sustainability of Member-based Rural Financial Intermediaries.”Johns Hopkins University Press.
|
| [25] |
Porteous D.,2006. “Competition and Microfinance Interest Rate”, CGAP Focus Note, No.33.
|
| [26] |
Sparreboom and Duflos. ,2012.“The Financial Condition of the People’s Republic of China—The Analysis of the Existing Research and Public Data.” Working Paper-Financial Inclusion In China, 8~10.
|
|
|
|
