Savings mobilisation in micro-finance institutions

Publication Date: 2001
Published by: Proyecto sistema financiero rural

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Where do opportunities for sustainable savings lie?

Paper sees that the volume of savings coming from traditional clientele represents a minimal portion of the total funds mobilized by MFIs. The funding structure reflects a high dependency/concentration on large depositors (mainly institutional and of a volatile nature) as well as on term-loans granted, in many cases, under pretty loose terms by second-level banks and some international cooperation sectors. Paper investigates

• issues of the macro-economic and legal environment of a country - the development of financial services and savings mobilization
• internal challenges faced by the MFIs that opt to start savings mobilisation