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The sparse presence of formal financial intermediaries in rural mexican towns en courages people to rely on rotating savings and credit associations (rosca’s), moneylenders and borrowings from relatives/friends. Savings banks, based on the community’s social capital, turned out to be a feasible alternative for traditional informal finan ce. This paper, based on a sample drawn in the town of Santo Tomas Hueyotlipan (Puebla, Mexico), examines the participation of people in informal savings banks and their interaction with other informal financial intermediaries. The probit model estimates show that membership is strongly linked to savings attracting people who neither resort to rosca’s nor borrow from moneylenders or relatives/friends.

Instituciones microfinancieras y cajas de ahorro en Santo Tomás Hueyotlipan, Puebla