Asymmetric Information on Non-Bank Microfinance Institutions in Lending to Micro and Small Enterprises

Abstract

Non-bank microfinance institutions are most compatible with micro and small enterprises in increasing their capital. But the problem, NBMFI lending to MSEs is not optimal indicated from the volume of credit that can be accessed by micro and small enterprises. This study aims to identify the various constraints, especially constraint of information asymmetry on microfinance institutions in lending for Small and Micro Enterprises. Population were taken in this research ore microfinance institutions in the Bandung Regency, with a sample of 46 NBMFls that are spread in 20 Districts. Non-bank Microfinance Institutions which are taken in the form of credit. multipurpose dan sharia (Islamic) Cooperatives. The type of research is survey research, with descriptive statistics and multi regression as tools in analyzing the data. The results showed that information cost influence total volume of Credit only. as one of indicators of NBMFl's performance in highly significance . Based on the research, capital, risk and competitive factors influence NBMFI's performance in lending for small and medium enterprises