Financing the Rural Poor : Savings and Loan Network in Benin
The rural poor can save, although commercial banks are rarely able to mobilize these savings in financial form. Rural credit demand is also high, not only to survive drought and other periodic disasters but also to help move out of poverty through...
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| Language: | English |
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2012
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| Online Access: | http://documents.worldbank.org/curated/en/1996/07/12844985/financing-rural-poor-savings-loan-network-benin http://hdl.handle.net/10986/9961 |
| Summary: | The rural poor can save, although
commercial banks are rarely able to mobilize these savings
in financial form. Rural credit demand is also high, not
only to survive drought and other periodic disasters but
also to help move out of poverty through investments that
improve productivity and tap into economic opportunities.
Yet the high perceived costs and risks of intermediation
have deterred formal financial institutions from serving the
rural poor. The experience of the World Bank-assisted Rural
Savings and Loan Project in Benin shows that well-designed
investment in grass roots financial institutions can fill
this gap on a sustainable basis. |
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