Developing Deposit Services for the Poor: Preliminary Guidance for Donors
CGAP
Publication Date: 2001
Published by: Consultative Group to Assist the Poor (CGAP)
Document Type: Paper
Should you become involved in savings mobilisation?
The report states that mobilising savings on a large-scale and viable basis is difficult for both microfinance institutions (MFIs) and for the donors that support them. It requires:- strong accountable governance
- strong asset management
- an enabling legal and regulatory environment
Many MFIs find fulfilling these requirements quite challenging while donors that support savings mobilisation assume the weighty responsibility of assuring for the poor that their savings are secure
Supporting institutions to mobilise savings is a high-risk and serious business and the security of savings can often be compromised by sudden high inflation or currency devaluation while external shocks, such as natural disasters, can provoke liquidity crises. The report concludes with detailed recommendations and principles for potential donors together with a characterisation of savings products and institutional types.
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