Asymmetric information and financial inclusion in Piura

Resumen: ABSTRACT The financial and social performance of microfinance in Piura is analyzed in response tothe market failure: information asymmetries. Based on contributions from modern microeconomics, it is inferred that these extend to inclusive finance via adverse selection, moral hazard and herd behavior (Stiglitz, 2002), showing weak social and contractual relationships despite the good performance of MFIs. Quantitative methodologies based on factorial analysis and binary responses were applied; and using data from ENAHO (2019) and SBS (2019), it is found that, in the presence of asymmetries, the good financial performance of MFIs is not enough, since we are facing a social process that requires public policies to regulate its operation.