The Role of Credit Officers in the Performance of Micro Loans: Evidence from Brazil

35 Pages Posted: 21 Oct 2011

See all articles by Isabelle Agier

Isabelle Agier

Université Paris I Panthéon Sorbonne, UMR 201; Université libre de Bruxelles, CERMi

Date Written: September 20, 2011

Abstract

This paper studies the role played by credit officers in loan performance. The structural model of credit provision explicitly considers the credit officer's ability at the screening and audit stage. This model is estimated using rich data from VivaCred - a Brazilian NGO. Results suggest that (i) there is substantial heterogeneity among credit officers in the sample; (ii) their ability matters more at screening than at audit stage; and (iii) the estimated ability is correlated with their experience at VivaCred but not with their experience before joining the organization. Evidence suggests that a reduction in staff turnover would be beneficial to the institution.

Keywords: Credit officer, Microfinance, Microcredit, Screening, Audit, Delay, Default, Experience

JEL Classification: D82, D83, L31, O16, O54

Suggested Citation

Agier, Isabelle, The Role of Credit Officers in the Performance of Micro Loans: Evidence from Brazil (September 20, 2011). Available at SSRN: https://ssrn.com/abstract=1946912 or http://dx.doi.org/10.2139/ssrn.1946912

Isabelle Agier (Contact Author)

Université Paris I Panthéon Sorbonne, UMR 201 ( email )

IEDES, 45 bis avenue de la Belle Gabrielle
Nogent sur Marne, 94736
France

Université libre de Bruxelles, CERMi

Avenue F.D. Roosevelt 21 - CP145/1
Brussels, B-1050
Belgium

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