Microfinance improves access to bank credit – Fed paper

Study finds Rwandan initiative built credit record and made bank loans more accessible

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A Rwandan microfinance initiative provided borrowers a bridge to regular bank credit, according to a recent Federal Reserve working paper.

Serving the Underserved: Microcredit as a Pathway to Commercial Banks looks at data from the Umurenge network of savings and credit co-operatives (U-Sacco). The study analyses the period between January 2008 and December 2018, during which U-Sacco began operating (in 2011). Eventually, more than 90% of Rwandans lived within three miles of a U-Sacco outlet.

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