Racial and gender discrimination in the micro firms credit market?: Evidence from Trinidad and Tobago

This paper examines the Market for loans from banks to micro- and small enterprises in Trinidad and Tobago. It tests for the presence of racial and gender discrimination. It takes the reported refusal to grant loans to groups, when all other indicators of credit-worthiness are taken into account, as evidence of discrimination. The paper distinguishes between Application and Denial Rates. It finds that, once all other indicators of credit-worthiness are taken into account, neither Application nor Denial rates differ significantly by gender. Reported Denial rates are, however, higher for Africans compared with other ethnic groups, implying the possible presence of discrimination