Nevertheless, the fact that the cost of bank financing has increased more than total financing costs, which also include market financing, might suggest that credit conditions have become on the whole less favourable for corporations that are more dependent on bank credit, in particular small and medium-sized corporations.
The administrative cost of delivery, disbursing and collecting a micro or tiny loan portfolio is much higher in comparison with conventional loan portfolios. So the borrowers end up paying interest rates that are substantially higher than the rates banks charge to their traditional borrowers.