Guillermo Baquero

Academic articles

Journal Article

Competition, loan rates and information dispersion in nonprofit and for-profit microcredit markets

Journal of Money, Credit and Banking 50 (5): 893–937
Guillermo Baquero, Malika Hamadi, Andréas Heinen (2018)
Subject(s): Finance, accounting and corporate governance
Keyword(s): Bank competition, microfinance, microcredit, microbank, loan rates, information dispersion, PAR, portfolio quality
JEL Code(s): D4, G21, L1, O1

We study the effects of competition on loan rates and portfolio-at-risk in microcredit markets using a new database from rating agencies, covering 379 microbanks located in 67 countries between 2002 and 2008. Our study reveals different competitive effects in nonprofit and for-profit microbanks. We find that for-profit microbanks charge significantly lower rates and exhibit improved portfolio-at-risk in less concentrated markets. In particular, the effect of concentration on loan rates is nearly three times the one reported in previous studies in banking. In contrast, nonprofit microbanks are relatively insensitive to changes in concentration. We control for interest rate ceilings, which very significantly reduce rates in for-profit microbanks. However, our study also uncovers a competitive interplay between for-profit and nonprofit microbanks. In particular, the PAR of nonprofit microbanks deteriorates when the proportion of profit-oriented microbanks increases. Finally, we find evidence consistent with dispersion of borrower-specific information among competing microbanks in the for-profit sector, even after controlling for the presence of credit registries.

Volume 50
Issue 5
Pages 893–937

Journal Article

Survival, look-ahead bias, and persistence in hedge fund performance

Journal of Financial and Quantitative Analysis 40 (3): 493–517
Guillermo Baquero, Jenke Horst, Marno Verbeek (2005)
Subject(s): Finance, accounting and corporate governance
Keyword(s): hedge funds, mutual funds, hedging, liquidation, liquidity, risk sharing
JEL Code(s): G14, G23
Volume 40
Issue 3
Pages 493–517