Banking on Competition: The Spillover Effects of Bank Entry into Microfinance
利用详细信贷登记数据，研究商业银行进入小额信贷市场如何改善借款人贷款条件并产生长期收益，同时揭示进入失败和危机后退出的风险，为政策制定者提供参考。
This paper examines how the entry of commercial lenders transforms microfinance markets, focusing on borrower outcomes and market-wide spillovers. Using detailed credit registry data, we show that increased competition improves loan terms for both graduating and staying borrowers, generating sustained benefits. Our setting also allows us to document what happens when entry fails and entrants retreat following a crisis. Despite increasing defaults, borrowers who graduate to banks experience long-term gains, particularly through lower borrowing costs. Our findings highlight the broader benefits and risks of fostering competition in microfinance, providing valuable insights for policymakers and financial inclusion initiatives.