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Can community-based microfinance groups match savers with borrowers? Evidence from rural Malawi

Rachel Cassidy, Marcel Fafchamps · 2015

Summary. Village Savings and Loan Associations in rural Malawi enable financial intermediation between commitment savers and borrowers, despite limited matching on occupation. Members with different time preferences sort together, allowing savers to access commitment mechanisms and borrowers to access credit in communities with minimal financial services. This matching pattern creates welfare gains for both groups.

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Cassidy, R., & Fafchamps, M.. (2015). Can community-based microfinance groups match savers with borrowers? Evidence from rural Malawi. http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.696.3462

Details

Countries
Malawi
Categories
funding, regional-innovation-systems, general-innovation
Added
2026-10-01