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Service provision    
        
Financial intermediation is an important process through which funds are channelled from suppliers to prospective users. In most countries a diversity of institutions, instruments and markets have evolved to provide financial intermediation services. These include formal institutions such as banks, semi-formal institutions such as cooperatives and informal providers such as traders and moneylenders.

Providing financial services in rural areas is a particular challenge as agriculture has unique characteristics of dependence on natural resources, long production cycles and vulnerability to risks, while scattered populations greatly increase operating costs. This Learning Centre aims to bring together resources that can help financial service providers to operate efficiently in this environment and increase their outreach in a sustainable manner.

You can browse for resources in the different sub-topics listed on the side navigation bar. Here at the top level you can find a selection of documents that provide an insight into the range and diversity of financial service providers.

  
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TitleProviding Financial Services to Poor Farmers through a Local Trader: An Indonesian
Author/ EditorAdam, M.
Content Language(s)English
Type of Document Case study
Abstract / DescriptionThis case study presents an agricultural microfinance model developed by Koperasi Serba Usaha – Swadaya Dian Khatulistiwa (KSU-SDK) in the Regency of Pontianak (West Kalimantan, Indonesia). KSU-SDK relies heavily on local traders to select borrowers, set loan terms and enforce loan repayments at the community level. Analysis of KSU-SDK’s approach is based on 10 Best Practices in Agricultural Microfinance formulated by Christen and Pearce (2005). This study shows that while local traders seem to be successful in managing loan portfolios since they do not default on their loans, many questions remain regarding the way they interact with the farmers.

Keywords FINANCIAL SERVICES; AGRICULTURAL MICROCREDITS
Country INDONESIA
Date of Publication/Issue2006
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Number of Pages14 pp.
  
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