The Role of Savings in Local Financial Markets: The Indonesian Experience

Publication Date: 1992
Published by: USAID - U.S. Agency for International Development
Document Type: Paper

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Shattering the myth of low demand for savings in rural areas

Presents conditions required for sustainable and successful rural financial institutions, such as:

• good macroeconomic management and rural development
• a reasonable level of political stability, so that people have trust in the broad continuity of institutions and policies
• provision of savings mobilization which is both achievable and essential
• the training of institutional staff in understanding the markets they finance
• lending and deposit instruments with the spread in their interest rates being planned in conjunction with one another

This document is available in hardcopy only. Copies of GEMINI publications can be obtained from PACT Publications.