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.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2001-06-04
Subjects:	ADMINISTRATIVE COSTS, AGRICULTURAL CREDIT, AGRICULTURAL PRODUCTION, AGRICULTURE, ARBITRAGE, BANK BRANCHES, BANKING SECTOR, BRANCH LOCATION, CAPACITY BUILDING, CREDIT MARKETS, DEBT, DEPOSITS, DEVELOPMENT BANKS, ECONOMETRIC MODELS, EMPLOYMENT, FARMS, FINANCIAL ASSETS, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL MARKETS, FINANCIAL SERVICES, FISCAL YEAR, FOREIGN BANKS, GOVERNMENT INTERVENTION, HOUSING, IMPERFECT SUBSTITUTES, INCOME, INCOME DISTRIBUTION, INCOME LEVELS, INSURANCE, INTEREST RATES, INVENTORIES, LEGISLATION, LIQUID ASSETS, LIQUIDITY, MARGINALITY, MATURITIES, MICROFINANCE, PER CAPITA INCOME, PORTFOLIO, PORTFOLIOS, REGULATORY FRAMEWORK, SAPS, SAVINGS, SAVINGS BEHAVIOR, SAVINGS THEORIES, SUSTAINABLE DEVELOPMENT RURAL FINANCE, DEPOSIT BANKING, MARGINAL ANALYSIS, HOUSEHOLD SURVEYS, SUPPLY & DEMAND, REMITTANCES, CASE STUDIES, POVERTY MITIGATION, POLICY FRAMEWORK, RURAL DEVELOPMENT, FORMAL SECTOR, INFORMAL SECTOR, FINANCIAL MECHANISMS, FINANCIAL INSTRUMENTS, POVERTY INCIDENCE, MARKET-BASED INSTRUMENTS,
Online Access:	http://documents.worldbank.org/curated/en/2001/06/1490190/mexico-rural-finance-savings-mobilization-potential-deposit-instruments-marginal-areas https://hdl.handle.net/10986/15511
Tags:	Add Tag No Tags, Be the first to tag this record!