Using the Rural Bank of Panabo (RBP), The Philippines, as a case study, this paper presents the findings of the Consultative Group to Assist the Poorest (CGAP) on savings mobilisation
Provides a panoramic view of the macroeconomy, the financial sector, and the social and cultural context
Undertakes institutional analysis of the RBP network system, particularly of its characteristics, institutional type, governance and organisational structures
Explores its demand-oriented savings products and technologies. Specifically looks at the characteristics of the RBP's classic savings products and the demand for such saving services among rural low income populations. Notes that no in depth market studies were conducted prior to the introduction of these products
Concludes that:
* the case of the Rural Bank of Panabo illustrates that a small financial institution can successfully mobilise savings from a low-income target clientele without having a specific strategy, approach or philosophy towards savings
* the strong community orientation and private ownership of the institution suggest that rural banks are an effective type of financial institution in mobilising savings in rural areas
* the relatively small capital base of rural banks in comparison to commercial banks and the nature of their operations with low-income clients requires prudent liquidity and asset management
* RBP has acquired the image of a modern and reliable community based bank having been in operation for 30 years without closure because of prudent liquidity management
