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Impact of Monitoring Activities and Social Ties on the Repayment Problems of group-Based Lending-Evidence from Vietnam

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Listed:
  • Tran Ba-Tri

    (School of Economics, Can Tho University, Vietnam)

  • Loc Dong Truong

    (School of Economics, Can Tho University, Vietnam)

  • Pham Phat Tien

    (School of Economics, Can Tho University, Vietnam)

Abstract

This study examines how monitoring activities by group leaders and social ties within groups influence repayment rates in the Vietnam Bank for Social Policy’s group lending program in the Mekong Delta. Data used in this paper was obtained from a survey of 675 members from lending groups in 5 provinces in the Mekong Delta in September 2022. The analysis finds a negative relationship between the leader’s social ties and repayment rates, implying that strong social ties might hinder enforcement. However, the impact of leader monitoring, member-level monitoring, and social ties was not statistically significant. Interestingly, group characteristics like size and regulations may play a more significant role in reducing repayment problems.

Suggested Citation

  • Tran Ba-Tri & Loc Dong Truong & Pham Phat Tien, 2024. "Impact of Monitoring Activities and Social Ties on the Repayment Problems of group-Based Lending-Evidence from Vietnam," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(8), pages 478-487, August.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:8:p:478-487
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    References listed on IDEAS

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