Women's Access to Credit in France: How Microfinance Institutions Import Disparate Treatment from Banks
35 Pages Posted: 30 Jan 2014
Date Written: January 29, 2014
This paper compares the loans granted to male and female entrepreneurs by a French microfinance institution (MFI). The sample period is split in two: before and after the MFI implemented France's regulatory EUR 10,000 loan ceiling. In the first period, the MFI does not co-finance projects with mainstream banks and loan size is gender-insensitive. In the second period, the MFI does co-finance above-ceiling projects with mainstream banks, and we observe a gender gap in loan size. The results suggest that co-financing leads the originally gender-neutral MFI to import disparate treatment from mainstream banks.
Keywords: Microcredit, bank, loan ceiling, gender, France
JEL Classification: G21, J16, M13, L51, G28, O52, I38
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