Can Technical Assistance Sow the Seeds for Rural Finance?

Can Technical Assistance Sow the Seeds for Rural Finance?

Government interventions to lower interest rates and expand credit to the rural sector are common in developing countries. Some of these policies, like interest rate subsidies, though well-intentioned, can be distortionary and achieve opposite resu...

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Bibliographic Details
Main Authors: Bruhn, Miriam, Reddy, Rekha, Ruiz Ortega, Claudia
Format: Brief
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
RURAL FINANCE
TECHNICAL ASSISTANCE
RURAL CREDIT UNIONS
MICROFINANCE
Online Access:http://documents.worldbank.org/curated/en/439421530030039244/Can-technical-assistance-sow-the-seeds-for-rural-finance
http://hdl.handle.net/10986/29968
id okr-10986-29968
recordtype oai_dc
spelling okr-10986-299682021-05-25T10:54:38Z Can Technical Assistance Sow the Seeds for Rural Finance? Bruhn, Miriam Reddy, Rekha Ruiz Ortega, Claudia RURAL FINANCE TECHNICAL ASSISTANCE RURAL CREDIT UNIONS MICROFINANCE Government interventions to lower interest rates and expand credit to the rural sector are common in developing countries. Some of these policies, like interest rate subsidies, though well-intentioned, can be distortionary and achieve opposite results. Interventions that tackle constraints that prevent the market from allocating credit on its own may achieve better results. One such constraint often present in rural areas is lack of technical capacity. Rural financial institutions are often ill-equipped to screen, monitor and manage risk and to price products. This lack of capacity increases operational costs which are passed on to borrowers in the form of higher interest rates and less lending. 2018-07-13T15:54:10Z 2018-07-13T15:54:10Z 2018-06 Brief http://documents.worldbank.org/curated/en/439421530030039244/Can-technical-assistance-sow-the-seeds-for-rural-finance http://hdl.handle.net/10986/29968 English Finance & PSD Impact;No. 50 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief Latin America & Caribbean Mexico
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic RURAL FINANCE
TECHNICAL ASSISTANCE
RURAL CREDIT UNIONS
MICROFINANCE
spellingShingle RURAL FINANCE
TECHNICAL ASSISTANCE
RURAL CREDIT UNIONS
MICROFINANCE
Bruhn, Miriam
Reddy, Rekha
Ruiz Ortega, Claudia
Can Technical Assistance Sow the Seeds for Rural Finance?
geographic_facet Latin America & Caribbean
Mexico
relation Finance & PSD Impact;No. 50
description Government interventions to lower interest rates and expand credit to the rural sector are common in developing countries. Some of these policies, like interest rate subsidies, though well-intentioned, can be distortionary and achieve opposite results. Interventions that tackle constraints that prevent the market from allocating credit on its own may achieve better results. One such constraint often present in rural areas is lack of technical capacity. Rural financial institutions are often ill-equipped to screen, monitor and manage risk and to price products. This lack of capacity increases operational costs which are passed on to borrowers in the form of higher interest rates and less lending.
format Brief
author Bruhn, Miriam
Reddy, Rekha
Ruiz Ortega, Claudia
author_facet Bruhn, Miriam
Reddy, Rekha
Ruiz Ortega, Claudia
author_sort Bruhn, Miriam
title Can Technical Assistance Sow the Seeds for Rural Finance?
title_short Can Technical Assistance Sow the Seeds for Rural Finance?
title_full Can Technical Assistance Sow the Seeds for Rural Finance?
title_fullStr Can Technical Assistance Sow the Seeds for Rural Finance?
title_full_unstemmed Can Technical Assistance Sow the Seeds for Rural Finance?
title_sort can technical assistance sow the seeds for rural finance?
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/439421530030039244/Can-technical-assistance-sow-the-seeds-for-rural-finance
http://hdl.handle.net/10986/29968
_version_ 1764470939931639808

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