community bank

« Back to Glossary Index

Community Banks/Village Banks are formal versions of ‘associations’ and are created by members of a target community who wish to improve their living standards and to generate employment. By offering microfinance services, these banks seek to develop their communities.
Guarantees are provided by social collateral (peer-pressure) as services are distributed through 5-member groups where each member’s eligibility for loans is based on his/her peer’s performance.
(source: http://microfinancehub.com/2010/04/03/8-microfinance-lending-models-types-of-mfis/)

« Back to Glossary Index
Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *