Microfinance institutions have long targeted women as recipients due to the belief that women more reliably pay back their loans and the increased access to funds serves to improve women's decision-making power in the household. However, some institutions implement a co-signature requirement in order for women to take out a microfinance loan. This may be acting as a barrier for women to access credit.

IPA has partnered with Microfinanzas PRISMA, an MFI in Peru, to identify the implications of the cosignatory requirement. The study is set up in four agencies in the Peruvian Highlands: Huancayo, Huaraz, Juliaca and Tarma. Through a geographic randomization of districts, the study divides all new communal banks in these areas into two groups: 1. The control group, in which the cosignatory requirement remains the same, and 2. The treatment group, in which the cosignatory requirement is removed. The study will use a baseline and follow-up survey to analyze whether the removal of the signature is allowing more people to join the banks and if the default rate is increasing. Other questions from the surveys will be within the realm of household dynamics and bargaining.