02136cas a2200277 a 4500 AALejournalIMF018770 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484376362 1018-5941 BD-DhAAL BD-DhAAL Agarwal, Sumit. Financial Access Under the Microscope / Sumit Agarwal, Thomas Kigabo, Camelia Minoiu, Andrea Presbitero. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (55 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We examine the impact of a large-scale microcredit expansion program on financial access and the transition of previously unbanked borrowers to commercial banks. Using administrative micro-data covering the universe of loans to individuals from a developing country, we show that the program significantly increased access to credit, particularly in less developed areas. This effect is driven by the newly set-up credit cooperatives (U-SACCOs), which grant loans to previously unbanked individuals. A sizable share of first-time borrowers who need a second loan switch to commercial banks, which cream-skim low-risk borrowers and grant them larger, cheaper, and longer-term loans. These borrowers are not riskier than similar individuals already at commercial banks and only initially receive smaller loans. Our results suggest that the microfinance sector, together with a well-functioning credit reference bureau, help mitigate information frictions in credit markets. Mode of access: Internet Kigabo, Thomas. Minoiu, Camelia. Presbitero, Andrea. IMF Working Papers; Working Paper ; No. 2018/208 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/208/001.2018.issue-208-en.xml IMF e-Library