Cost Analysis in Colombia Microcredit in Comparison with Other Countries Emerging in Latin America

Posted: 22 Feb 2017

Date Written: February 21, 2017

Abstract

In the field of microfinance, there is constant concern about the high cost of financing microentrepreneurs. This article is intended to, address the costs of microcredit in Colombia in relation to some countries in the context of Latin America, in order to identify the factors that determine the level of interest rates. This paper is divided into three parts: The first part refers to the regulatory framework of Colombia in relation to interest rates of microcredit, where a pattern of stops is evident in interest rates of microfinance, which is a rigid structure capital costs.

The second part focuses on an analysis of behavior in the periods between 2010-2015 in relation to other market interest rates. This analysis allows us to note that microcredit in Colombia have reached levels of coverage and depth in relation to other forms of credit, such as commercial and consumer.

And finally in the third part to comparison with other countries in the context of Latin America from the work done by the Economic Commission for Latin America and the Inter-American Development Bank in order to conclude with the costs of microcredit is done in the system of financing the microfinance industry.

Keywords: Costs, Micro-Credit, Late Payments, Interest Rate Risk

Suggested Citation

Durango Gutiérrez, Maria Patricia, Cost Analysis in Colombia Microcredit in Comparison with Other Countries Emerging in Latin America (February 21, 2017). XVI International Business & Economy Conference (IBEC) - Chile 2017, Available at SSRN: https://ssrn.com/abstract=2920985

Maria Patricia Durango Gutiérrez (Contact Author)

Institución Universitaria ESUMER ( email )

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
444
PlumX Metrics