The Study

Objective of Study

Study commissioned by World Bank in mid-1993

Study was carried out by Price Waterhouse, in conjunction with

an independent development professional

Study carried out from the perspective of a rural financial

institution (RFI)

To assess the potential market for financial services provided to

the rural poor

Identify constraints to realizing the potential and develop

workable approaches to reducing the constraints

Extending services to the rural poor in a financially sustainable

manner

Study Details

18 months to complete

Covered 60 villages

Canvassed 600 rural poor individuals (300 men and 300

women) and 110 rural branch officers using structured
questionnaires

In-depth analysis of over 600 loan records and 750 deposits

Study Components

A survey to determine the pattern of demand and supply of financial

services for the rural poor and women

Study of financial service providers, particularly of a large public sector

bank, with a view to assess the depositor and borrower profile, loan
portfolio, recoveries and loan losses, costs and profitability

A study of institutional practices and attitudes (IPAs) of bank officials

who deal with the rural poor and women as clients

A survey of 'best' practices adopted by the mainstream financial

institutions and alternative FIs (such as NGO self-help groups), with a
view to cost them and assess their effectiveness and possibility of
wider use, to reach the poor

Development of a set of financial scenarios with various assumptions

about policy and operating level changes

Conceptual
Framework

If
It scores high on

ACCESS

&

SUSTAINABILIT
Y

Causal Variables

The framework sought to explain the variation across FIs in

access and sustainability through causal variables described as

'Institutional Practices and Attitudes' (IPAs)

Internal to the FI

'Mechanisms that Enhance/Thwart Access'

(MEAs)
Used by the FI to interface with its clients

Policy Impact On Institutional

Performance