Paper
Microfinance as a Nexus of Incentives
Can incentive problems undermine the successful provision of financial services?
43 pages
This paper examines how incentive problems affect the provision of financial services. It finds that incentives at the different levels of i) lending operations, ii) human resource management or iii) governance in microfinance institutions, interrelate, and ultimately unresolved problems at one level may undermine any potential for success at the other levels. It examines the potential of strategic networks to create institutions that act as consistent systems that can resolve the problems found at all three levels simultaneously.
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