Mexico - Rural Finance : Savings Mobilization Potential and Deposit Instruments in Marginal Areas
The specific objectives of this study are to document, and analyze the extent, and modalities of savings practiced by rural households, and enterprises, identifying the factors that limit, and help explain rural savings in financial form, on the demand, and supply sides, as well as setting forth guidelines for pilot interventions aimed at expanding sustainable savings mobilization in rural areas. The study focuses on the areas classified as marginal in the Oaxaca, and Huasteca regions, where activities were carried out on household surveys, and on interviews with formal, and informal providers of financial services, in addition to a review of savings mobilization. Following Chapter I, an overview of findings, and conclusions, Chapter II provides insights on current thinking in the matter of savings and the poor, and, relates these developments with the main government policies, and programs that focus on the rural sector. Chapter III characterizes the supply of financial services in Mexico, and in particular, in the marginal areas covered by the study. Household savings practices, and their participation in formal/informal financial deposit, and credit markets, are analyzed in Chapter IV. Chapter V looks into the factors that determine households' portfolio decisions, and their participation in financial markets, while, conclusions, and recommendations, summarized in Chapter VI, suggest considerable savings potential in rural areas are seeking reliable financial instruments, which would help integrate the poor into the national economy. But inadequate regulatory framework, and market structures have weakened financial services in rural areas, and this may justify public intervention, based on international experience on services provision mechanisms.
| Summary: | The specific objectives of this study
are to document, and analyze the extent, and modalities of
savings practiced by rural households, and enterprises,
identifying the factors that limit, and help explain rural
savings in financial form, on the demand, and supply sides,
as well as setting forth guidelines for pilot interventions
aimed at expanding sustainable savings mobilization in rural
areas. The study focuses on the areas classified as marginal
in the Oaxaca, and Huasteca regions, where activities were
carried out on household surveys, and on interviews with
formal, and informal providers of financial services, in
addition to a review of savings mobilization. Following
Chapter I, an overview of findings, and conclusions, Chapter
II provides insights on current thinking in the matter of
savings and the poor, and, relates these developments with
the main government policies, and programs that focus on the
rural sector. Chapter III characterizes the supply of
financial services in Mexico, and in particular, in the
marginal areas covered by the study. Household savings
practices, and their participation in formal/informal
financial deposit, and credit markets, are analyzed in
Chapter IV. Chapter V looks into the factors that determine
households' portfolio decisions, and their
participation in financial markets, while, conclusions, and
recommendations, summarized in Chapter VI, suggest
considerable savings potential in rural areas are seeking
reliable financial instruments, which would help integrate
the poor into the national economy. But inadequate
regulatory framework, and market structures have weakened
financial services in rural areas, and this may justify
public intervention, based on international experience on
services provision mechanisms. |
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