The Impacts of Microcredit: Evidence from Bosnia and Herzegovina

A substantial part of the world’s poor has limited, if any, access to formal sources of credit. Instead, they depend on informal credit from expensive moneylenders or have to borrow from family and friends (Collins et al. 2009). Such credit rationing may constrain entrepreneurship and keep people trapped in poverty. Microfinance, pioneered by the Bangladeshi Grameen Bank, aimed to deal with this issue in a sustainable fashion. A key research and policy question is whether…