Credit demand and credit rationing in the informal financial sector in Uganda
Date
2005
Authors
Okurut F.N.
Schoombee A.
van Der Berg S.
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Journal ISSN
Volume Title
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Abstract
This paper investigates the household and individual characteristics that influence the demand and supply of informal credit in Uganda, which credit is important for improving the welfare of the poor. Informal credit demand is positively and significantly influenced by age, sex, education level, dependency ratio, household expenditure, and regional location. On the supply side, informal lenders' credit rationing behaviour is negatively and significantly influenced by age, sex, asset values, and regional location. Government policies should focus on increasing both the productive capacity and wealth of households in order to enhance the poor's creditworthiness and make them less susceptible to credit rationing by lenders. © 2005 Economic Society of South Africa.
Description
Keywords
credit provision, financial policy, financial services, household expenditure, household income, Africa, East Africa, Sub-Saharan Africa, Uganda
Citation
South African Journal of Economics
73
3
73
3