We propose a more complete conceptual framework for analysis of SME credit availability issues. In this framework, lending technologies are the key conduit through which government policies and national financial structures affect credit availability. We emphasize a causal chain from policy to financial structures, which affect the feasibility and profitability of different lending technologies. These technologies, in turn, have important effects on SME credit availability. Financial structures include the presence of different financial institution types and the conditions under which they operate. Lending technologies include several transactions technologies plus relationship lending. We argue that the framework implicit in most of the literature is oversimplified, neglects key elements of the chain, and often yields misleading conclusions. A common oversimplification is the treatment of transactions technologies as a homogeneous group, unsuitable for serving informationally opaque SMEs, and a frequent misleading conclusion is that large institutions are disadvantaged in lending to opaque SMEs.

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A more complete conceptual framework for SME finance

As the solar photovoltaic (PV) matures, the economic feasibility of PV projects are increasingly being evaluated using the levelized cost of electricity (LCOE) generation in order to be compared to other electricity generation technologies. Unfortunately, there is lack of clarity of reporting assumptions, justifications and degree of completeness in LCOE calculations, which produces widely varying and contradictory results. This paper reviews the methodology of properly calculating the LCOE for solar PV, correcting the misconceptions made in the assumptions found throughout the literature. Then a template is provided for better reporting of LCOE results for PV needed to influence policy mandates or make invest decisions. A numerical example is provided with variable ranges to test sensitivity, allowing for conclusions to be drawn on the most important variables. Grid parity is considered when the LCOE of solar PV is comparable with grid electrical prices of conventional technologies and is the industry target for cost-effectiveness. Given the state of the art in the technology and favorable financing terms it is clear that PV has already obtained grid parity in specific locations and as installed costs continue to decline, grid electricity prices continue to escalate, and industry experience increases, PV will become an increasingly economically advantageous source of electricity over expanding geographical regions.

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A review of solar photovoltaic levelized cost of electricity

Entrepreneurship in and around institutional voids: A case study from Bangladesh ☆

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2006631_code1791404.pdf?abstractid=2006631&mirid=1

A Review of Solar Photovoltaic Levelized Cost of Electricity

Microfinance contracts have proven able to secure high rates of loan repayment in the face of limited liability and information asymmetries, but high repayment rates have not translated easily into profits for most microbanks. Profitability, though, is at the heart of the promise that microfinance can deliver poverty reduction while not relying on ongoing subsidy. The authors examine why this promise remains unmet for most institutions. Using a data set with unusually high quality financial information on 124 institutions in 49 countries, they explore the patterns of profitability, loan repayment, and cost reduction. The authors find that institutional design and orientation matter substantially. Lenders that do not use group-based methods to overcome incentive problems experience weaker portfolio quality and lower profit rates when interest rates are raised substantially. For these individual-based lenders, one key to achieving profitability is investing more heavily in staff costs-a finding consistent with the economics of information but contrary to the conventional wisdom that profitability is largely a function of minimizing cost.

/pdf/financial-performance-and-outreach-a-global-analysis-of-1wf4unkl40.pdf

Financial performance and outreach: a global analysis of leading microbanks*

/pdf/the-microfinance-revolution-sustainable-finance-for-the-poor-51f2whir2f.pdf

The microfinance revolution: sustainable finance for the poor.

This book focuses on how the demand for microfinance can be met on a global scale. It documents the contributions of institutions and of people who have led the development of commercial finance for the poor, and it analyzes the principles on which the microfinance revolution is based. In sum, this work offers a detailed overview of the development of microfinance over the past 20 years; a global view of microfinance in the developing world (largely excluding Eastern Europe); a thesis on the future path of microfinance; a coherent theory about microfinance--why it works when so many other development interventions fail; detail on a number of important microfinance topics--such as informal moneylending and savings; an important study on, and lessons from Indonesia, with detailed analysis of Bank Rakyat Indonesia; and, brief studies of many other microfinance institutions in Africa, Asia, and Latin America.

/pdf/the-microfinance-revolution-kpqkz79e3x.pdf

The microfinance revolution

/pdf/the-microfinance-revolution-volume-2-lessons-from-indonesia-3cndmnvy1j.pdf

The Microfinance Revolution : Volume 2. Lessons from Indonesia

This paper, which was presented at the HIID History Conference held in Bermuda in March 1995, analyzes HIID's role in the development of sustainable microfinance. The paper is about the history of an idea that the massive demand for microfinance in developing countries can be supplied by sustainable institutions providing financial services commercially, and that these services can have important effects on social and economic &p development. This has now been well demonstrated on a large scale. We discuss here HIID's role in the formulation of the initial hypotheses and HIID's contributions in planning and coordinating the underlying research, advising on the policies and implementation strategies that put concept into practice, analyzing the results, and disseminating the findings. Drawing on work in Asia, Africa, and Latin America, the paper analyzes the paradigm shift in microfinance from government and donor-funded subsidized credit to sustainable financial intermediation. This shift has occurred because of the work of many people in many countries. This paper, however, is limited to HIID's contribution. The policy implications of the 'new microfinance' for governments, donors, banks, and NGOs are explored. Marguerite Robinson, an Institute Fellow at HIID, holds a Ph.D. in Anthropology from Harvard University. Working for the Indonesian Ministry of Finance, she advised BRI for over a decade on the development of its unit banking system. She is presently consulting for BRI and for financial institutions in other countries, helping to adapt lessons from BRI to local financial markets elsewhere.

Marguerite S. Robinson

Papers

The microfinance revolution: sustainable finance for the poor.

The microfinance revolution

The Microfinance Revolution : Volume 2. Lessons from Indonesia

The Paradigm Shift in Microfinance: A perspective from HIID

lessons from Indonesia