Tabs navigation
Rural Financial Service Associations – the concept
Because of their high transaction costs, banks have made limited progress in extending their services to rural areas in developing countries, and informal savings and loans groups, such as rotating credit clubs, are limited by the fact that they do not build up their capital betweencycles. This article describes a new model for rural banking: Financial Service Associations (FSAs). The article describes some of the strengths and shortcomings of other formal and informal financial arrangements before describing in detail the proposed structure and services of the FSA.
These include taking savings and providing loans to clients, who qualify for membership of the FSA by being locally based shareholders. Following on from this article, it is hoped that a subsequent issue of the journal will include a description of the FSA pilot projects taking place in South
Africa and several other African countries.
Because of their high transaction costs, banks have made limited progress in extending their services to rural areas in developing countries, and informal savings and loans groups, such as rotating credit clubs, are limited by the fact that they do not build up their capital between
cycles. This article describes a new model for rural banking: Financial Service Associations (FSAs). The article describes some of the strengths and shortcomings of other formal and informal financial arrangements before describing in detail the proposed structure and services of the FSA.
These include taking savings and providing loans to clients, who qualify for membership of the FSA by being locally based shareholders. Following on from this article, it is hoped that a subsequent issue of the journal will include a description of the FSA pilot projects taking place in South
Africa and several other African countries.
cycles. This article describes a new model for rural banking: Financial Service Associations (FSAs). The article describes some of the strengths and shortcomings of other formal and informal financial arrangements before describing in detail the proposed structure and services of the FSA.
These include taking savings and providing loans to clients, who qualify for membership of the FSA by being locally based shareholders. Following on from this article, it is hoped that a subsequent issue of the journal will include a description of the FSA pilot projects taking place in South
Africa and several other African countries.
Empowering Poor Rural Villages in South Africa:A Preliminary Investigation into Financial Service Cooperatives
NIGRINI, M
South African Journal of Economics, Vol. 70 (2002), Iss. 2 P.172
https://doi.org/10.1111/j.1813-6982.2002.tb01296.x [Citations: 2]Rotating savings and credit associations: the choice between random and bidding allocation of funds
Kovsted, Jens
Lyk-Jensen, Peter
Journal of Development Economics, Vol. 60 (1999), Iss. 1 P.143
https://doi.org/10.1016/S0304-3878(99)00039-5 [Citations: 24]Tabs navigation
- Value chain financing: evidence from Zambia on smallholder access to finance for mechanization
- Developing agro-pastoral entrepreneurship: bundling blended finance and technology
- Boosting financial inclusion through social assistance reform: evidence-based approach in selecting a payment system
- Building frontline market facilitators' capacity: the case of the ‘Integrating Very Poor Producers into Value Chains Field Guide’
- Impact of COVID-19 on livestock exports from Somalia and the Horn of Africa
Browse our other journals
