advantage – local knowledge – is unlikely to extend beyond the village (or ward) limits, there are also inherent limits to their growth.

|**Table 11.**<br>Label|**Variable Definitions and Summary Statistics**<br>Variable description|Observations|Mean|Std. Dev.|
|---|---|---|---|---|
|**Dependent v**|**ariables: “performance”**||||
|lrr|Loan recovery rate* (if >0)|930|0.727|0.295|
|capavail|Capital available to lend ('000 baht)**|2,751|1,583|1,254|
|lending|Lending in 2009 (as of May), '000 baht|2,669|1,314|1,490|
|rprrate3|Profit rate***|2,390|-0.135|7.485|
|lrate2|Proportion of individuals borrowing from VF (if <1)|2,687|0.111|0.235|
|soccon|Social contributions ('000 baht)|2,639|6.4|10.9|
|interest|Interest rate charged by VF on its main loans|2,855|6.00|2.91|
|v3_25|Credit rating: A|150|0.072||
||Credit rating: B|946|0.453||
||<br>Credit rating: C|994|0.476||
|btoonlend|VF borrows from BAAC or other, to on-lend (Yes=1)|3,091|0.224||
|vfpoorr|VF loans topoorer half/VF loans to upper half,rural****|866|1.684|1.338|
|**Independent**|**variables: fund capital**||||
|initVFk|Initial VF capital ('000 baht)|2,751|1,165|884|
|cansave|VF allows for saving|3,062|0.645|0.478|
|mustsave|VF requires members to save|3,035|0.556|0.497|
|**Independent**|**variables: characteristics of VF committee**||||
||Proportion of VF committee members who:||||
|somehed|have some higher education|3,091|0.068|0.252|
|praccexp|have accounting experience|2,974|0.075|0.048|
|needlev|need training in loan appraisal|3,061|0.634|0.482|
|computyes|VF accounts are computerized|3,091|0.321|0.467|
|vfnotel|VF officers chosen by committee or village head|3,074|0.155|0.362|
|equity|VF would cut loans equallyif funds are short|3,038|0.355|0.479|
|**Independent**|**variables: village size and organization**||||
|villhh|Number of households in village|2,867|317.8|402.2|
|villmkt|<br>Village has a market|3,018|0.362|0.481|
|rural|Whether area is rural(=1)or not(=0)|3,091|0.462|0.499|
|**Independent**|**variables: household characteristics**||||
|hhempsf|Proportion of households who have self-employed farmers|3,011|0.189|0.225|
|wagetoinc|Proportion of income generated by wages|3,011|0.361|0.188|
|somesech|Proportion of population with some secondary education|3,011|0.328|0.225|
|nlassets|Household assets (excluding land), m baht|3,011|0.839|0.678|
|bankborrow|Proportion who have a loan from a formal bank|3,011|0.266|0.199|
|prfemb|Proportion of borrowers who are women|2,744|0.590|0.148|
|<br>a11|<br>Expenditureper capita(‘000 bahtper month)|3,011|5.077|2.447|
|**Independent**|**variables: loan terms and conditions**||||
|<br>bormore|<br>VF would borrow more if funds were short|3,038|0.123|0.328|
|safelend|VF could lend out another 1m baht safely|<br>3,077|0.721|0.449|
|bmorebaac|VF wants to borrow more from the BAAC/GSB/KTB|3,058|0.248|0.432|
|*|1 - value of loans not repaid as of end-December 2008/value of loans|disbursed 2009|||

- ** Capital from initial injection + loans in + deposits + shares + donations + other receipts

*** Reported profit - equity*average borrowing cost - value of volunteer labor (price 300 baht/day) **** Poorer half of villagers are those with expenditure per capita below the village median.

Source: Village Fund Survey, 2010 20