Microfinance as a Mechanism against Financial Exclusion in the European Rural Areas – an Inspiration for the Czech Republic

One of the factors influencing the emergence of disparities between rural and urban regions is the varying level of financial inclusion of the population. The system of microfinancing is becoming an important mechanism against poverty and social exclusion in Europe. However, there is available very limited legal, regulatory and historical information on the microfinance system in the Czech Republic. As a result, microfinance institutions are absent and small entrepreneurs tend to use expensive consumer credit products, thereby increasing the risk of over-indebtedness. The aim of this research is to examine the repayment performance of the European microfinance institutions with increased share of clients from rural areas. Based on an empirical statistical analysis of an unique European microfinance institutions´ database, we are presenting evidence that suggests that microfinance systems perform better in rural than in urban areas. This finding is strongly recommended for consideration in the development of policies to guide legal frameworks regarding microfinancing.

The Essence and Main Differences of Consumer Societies from Credit Consumer Cooperatives in the Light of Attracting Citizens' Funds

The article is devoted to the comparative analysis of the essence of consumer and credit cooperatives in the context of attracting citizens' funds, the transformation of their economic processes and functions in the genesis of microeconomic development. The research is based on the analysis of historical documents and Russian publications, as well as on statistical conclusions of economic data. The aim of the study was to study the evolution of consumer societies and credit cooperatives as instruments for attracting household finances on the example of Russian and foreign companies since the middle of the XIX century. Semantic definitions of the categories consumer society and consumer credit cooperative, tasks and historical stages of the development of the studied communication tools in the field of attracting the means of the population are determined. The author's experience of comparative characteristics of the analyzed economic entities is proposed, reflecting the risks, advantages and disadvantages of the studied communication objects. The functions of the Bank of Russia as the main regulator of consumer credit cooperatives are disclosed. The final results of the study substantiate the importance of financial literacy and present an algorithm that allows the population to distinguish the legal activities of consumer credit cooperatives from fraudsters.

Impact of the COVID-19 Pandemic on the Consumer Credit Market in V4 Countries

The aim of this article is to analyse and assess the impact of the COVID-19 pandemic on the consumer credit market in the countries of the Visegrad Group (V4, i.e., the Czech Republic, Poland, Slovakia, and Hungary). There is no doubt that the pandemic has determined the amount of household debt due to consumer credit in the V4 group, and thus the question arises of how the pandemic affects the propensity of households to take out loans and the propensity to lend to them, and therefore whether it affects both the behaviour of borrowers and lenders. The study used the time series and multiple linear regression methods. The results of the study show that the Covid-19 pandemic has determined the level of household debt in the V4 group and is not indifferent to household decisions regarding taking out consumer loans. Although the research is preliminary, it has contributed to some extent to a better understanding of household indebtedness at a time of turbulence and instability resulting from health factors in V4 countries. In the future, this research will serve as the basis for future research on the phenomenon of household indebtedness in other countries.

The Paternalistic Turn in Behavioral Law and Economics: A Critique

The application of behavioral economics to law and economics has taken a paternalistic turn. Behavioralists believe that the fundamental assumptions regarding individual behavior in standard theory do not reflect reality. If individuals are not “rational” in the standard economic sense, then there will be decisionmaking failures: people cannot be relied upon to make individually optimal decisions and thus to maximize welfare as they see it. This Article is organized as follows. Part One is a prelude and gives context. Part Two discusses the fundamental normative standard in behavioral public policy: true preferences. I then proceed to outline the causes of the divergence between true preferences and actual observed preferences. Part Three analyzes some of the knowledge problems is ascertaining the presence of cognitive and behavioral biases. Part Four presents a case study of the difficulties of behavioral policy analysis in the area of consumer credit. Part Five concludes.

Why Did Credit Card Balances Decline so Much during the COVID-19 Pandemic

Consumer credit card balances in the United States experienced unprecedented declines during the COVID-19 pandemic. According to the G.19 Consumer Credit statistical release, revolving consumer credit fell more than $120 billion (11 percent) in 2020, the largest decline in both nominal and percentage terms in the history of the series.

The Making of Everyman’s Capitalism in Sweden: Micro-Infrastructures, Unlearning, and Moral Boundary Work

This article analyzes the so-called turn to the market in Sweden, with an emphasis on aspects that are typically absent from large-scale narratives. How did the changes known as neoliberalization and financialization enter everyday life and mundane financial practices? And which analytical tools can historians use to meaningfully connect the experience of changes on the micro level to those on the macro level? Zooming in on the the year 1979 and focusing on two empirical cases—the popularization of stock saving and the domestication of consumer credit—allows us to elaborate and apply a set of analytical entry points about (1) mundane micro-infrastructures, (2) financial knowledge as learning and unlearning, and (3) moral boundary work. This framework offers a way of exploring when and in what ways new financial practices were experienced and eventually embraced by those who had previously been skeptical or even hostile. It also reveals the role played by actors and institutions not typically seen as agents of marketization.