Case studies on the monitoring of informal credit markets
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Date
1989Author
Lava, Aida
Arroyo, Dennis
de Guzman, Rosario
delos Santos, Joselette
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Abstract
informal moneylending in the urban and rural sectors. As
gleaned from the cases, the label of informality refers not only
to the absence of government control. It also reflects the very
wide range of terms and conditions prevalent in the credit
market. Interest rates, frequency of payments., mode of payments,
penalties, collateral requirements, and the like, vary
considerably among moneylenders and clients.
Past attempts at analyzing the informal credit market have
used baseline data drawn from those who avail of it — households
and firms. They constitute the demand side of the system.
However, for reasons or efficiency, it is the more natural
convention to monitor the supply side in other markets, as in
surveys of agricultural and industrial production. To monitor
credit from the vantage of supply would require the surveillance
of moneylenders, both urban and rural.