Rehabilitation of Rural Finance Institutions : Lessons from Benin and the African Experience
Most attempts to develop financial markets and rural credit institutions in Africa have performed poorly, not satisfying the demand for savings and credit services in the rural areas. In many cases, however, the institutions continue to exist and c...
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| Format: | Brief |
| Language: | English |
| Published: |
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1999/03/12586754/rehabilitation-rural-finance-institutions-lessons-benin-african-experience http://hdl.handle.net/10986/9870 |
| Summary: | Most attempts to develop financial
markets and rural credit institutions in Africa have
performed poorly, not satisfying the demand for savings and
credit services in the rural areas. In many cases, however,
the institutions continue to exist and could be revived,
enlarged, or made more efficient if suitable programs to
help them can be worked out. This note reviews the
strategies and measures that can be used to rehabilitate
rural finance institutions, based on the successful
rehabilitation program in Benin and some other cases in
Africa. Rehabilitation of a rundown rural finance
institution takes several years, but it can be organized in
phases, first concentrating on emergency measures to save
the institution from bankruptcy, and then planning and
implementing the actions for a longer term recovery process. |
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