unregulated MFIs, however. This article describes research demonstrating that poor people lose as much, and usually more, of their savings in informal savings mechanisms, such as ROSCAs, ASCAs, savings
in kind, and especially saving at home. Even formal savings institutions were found not to be completely safe. Prohibiting MFIs from accepting savings is likely to drive poor people to riskier informal
alternatives, and is therefore undesirable. It is clear that when discussing the risks to poor people's savings, this has to be evaluated on a relative basis. Very often all the alternative savings systems
available to poor people are risky... thus poor people are left facing decisions on the relative risk (or relative safety) of the various semi- and informal savings systems open to them. It would be better
to provide higher quality, clearer information to poor people about the risks involved of the various alternatives open to them.
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