La Reforma Financiera y las Cooperativas de Ahorro y Credito
Creators:González Vega, Claudio
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Publisher:Ohio State University. Department of Agricultural, Environmental, and Development Economics
Series/Report no.:Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 2053
This paper critically examines the assumptions and instruments of traditional approaches to financial markets. Limited access and high informal interest rates were taken in the 1950s and 1960s as evidence of market failure. The answer were public development banks and specialized credit programs. An incorrect diagnosis explains the failure of these programs. Financial services are expensive to provide. Expanded access will require policy reform, technological innovation and institutional design. For credit unions to play an important role in a competitive financial market, internal and external control mechanisms must be improved.