The Impact of Credit Unions in Guatemalan Financial Markets
Describes the Guatemalan economy, its financial sector and informal financial markets as important sources of credit for the rural population.
Outlines policies of the Cooperative Strengthening Project begun in 1987 which aimed to boost financial services beyond that offered by the government and private institutions. It emphasized the viability of credit unions as financial institutions and focused on improving their service delivery.
Application of policies brought unprecedented growth to credit unions, and the article details:
- Growth of deposits;
- Growth of shares;
- Loan portfolio growth;
- Credit union market niche;
- Member characteristics;
- Saver profile;
- Participation of women;
- Small and micro-enterprise participation.
Concludes that Guatemalan credit unions are working successfully within the low-income market. They offer competitive rates of return, a professional image, have member- orientated services and do not discriminate against the small saver. Their potential market is without limit, and with policies and disciplines now in place, can expand to reach a larger percentage of the population.
