Do Savings and Credit Institutions Reduce Vulnerability? New Evidence From Mexico

Robert Lensink, Roselia Servin Juarez*, Marrit van den Berg

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

6 Citations (Scopus)


This study examines whether membership in a savings and credit society (SACP) reduces vulnerability to poverty, using a representative survey from the National Savings and Financial Services Bank. The sample of households includes those that are and are not members of a SACP during 2004−2007. This evidence indicates that membership improves income; furthermore, membership decreases the variance in annual household per capita income. Both effects reduce the probability that somebody becomes poor. Finally, the results offer support for the proposition that households that join a SACP have better abilities to smooth consumption in the face of adverse shocks, and thus are less susceptible to shocks, than do households that are not members.

Original languageEnglish
Pages (from-to)335-352
JournalReview of Income and Wealth
Issue number2
Publication statusPublished - 2017


  • banking
  • Mexico
  • microfinance
  • savings societies
  • vulnerability
  • welfare


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