Loan officers and loan 'delinquency' in microfinance: A Zambian case

Dixon, R.; Ritchie, J.; Siwale, J.

doi:10.1016/j.accfor.2006.11.005

Loan officers and loan 'delinquency' in microfinance: A Zambian case

Dixon, R.; Ritchie, J.; Siwale, J.

Authors

Professor Rob Dixon robert.dixon@durham.ac.uk
Professor

J. Ritchie

J. Siwale

Abstract

The paper seeks to promote greater understanding of the importance of loan officers in group-based microfinance by explaining their actual roles, dilemmas and tensions when working with poor clients. Few existing studies have used data outside Bangladesh and most focus upon relatively well-performing institutions. Using data from Zambia this study focuses on the recent crisis of Christian Enterprise Trust of Zambia (CETZAM) and the effects of its practices for accounting for and dealing with defaulters. The findings firstly show that loan officers faced powerful hierarchical accountability pressures and pursued inappropriate methods to compel further repayments to resolve this crisis. Its approach to borrower default was found to be stressful for loan officers and potentially detrimental for CETZAM's own short and long-term survival by reducing client loyalty and trust.

Citation

Dixon, R., Ritchie, J., & Siwale, J. (2007). Loan officers and loan 'delinquency' in microfinance: A Zambian case. Accounting Forum, 31(1), 47-71. https://doi.org/10.1016/j.accfor.2006.11.005

Journal Article Type	Article
Publication Date	Mar 1, 2007
Deposit Date	Mar 4, 2009
Publicly Available Date	Mar 4, 2009
Journal	Accounting Forum
Print ISSN	0155-9982
Publisher	Taylor and Francis Group
Peer Reviewed	Peer Reviewed
Volume	31
Issue	1
Pages	47-71
DOI	https://doi.org/10.1016/j.accfor.2006.11.005
Keywords	Finance, Loan delinquency, Loan officers, Microfinance Institutions, Poverty, Zambia.
Public URL	https://durham-repository.worktribe.com/output/1562561