Expanding Opportunities for Rural Finance in Colombia
The purpose of this note is to provide policy recommendations to improve access to credit of rural populations and small agricultural producers under financially sustainable schemes. Although the agricultural sector remains an important source of e...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/01/25835297/expanding-opportunities-rural-finance-colombia http://hdl.handle.net/10986/23766 |
| id |
okr-10986-23766 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
MONEY LENDERS LINE OF CREDIT DEPOSIT FINANCIAL SERVICES BORROWER WAREHOUSE DEPOSITS RURAL CLIENTS PEOPLE AGRICULTURAL DEVELOPMENT BANK SMALL BANKS AGRICULTURAL CREDIT RURAL BORROWERS FINANCING MINIMUM WAGE FARMER INTEREST COMMODITY EXCHANGE GUARANTEES FINANCE COMPANIES SAVINGS ACCOUNTS INTEREST RATE PROPERTY RIGHTS BANKING SYSTEM DEBT MANAGEMENT FINANCIAL PROVIDERS RURAL CREDIT CREDIT COOPERATIVES LENDING PORTFOLIO LOAN CREDITWORTHINESS BORROWERS SUBSIDY PAYMENTS CREDIT PORTFOLIO SAVING INFORMATION SYSTEMS INTERNATIONAL BANK DEVELOPMENT FINANCE INSTITUTION LENDER MICROFINANCE INSTITUTIONS CREDIT UNDERWRITING PRIVATE FINANCIAL INSTITUTIONS FUNDING SOURCES PUBLIC CREDIT ECONOMIC ACTIVITY ADMINISTRATIVE REFORMS CREDITS SAVINGS MORTGAGES FINANCIAL SUSTAINABILITY TECHNICAL ASSISTANCE PUBLIC-PRIVATE PARTNERSHIP FINANCIAL INSTITUTION MORAL HAZARD PARTIAL CREDIT ACCESS TO FORMAL CREDIT CONSUMER CREDIT LOAN PRODUCTS UNION PUBLIC FUNDS USURY ECONOMIC COOPERATION BANK OFFICES INTEREST RATES DEPOSIT ACCOUNTS PAYMENT FINANCIAL INSTITUTIONS SOCIAL COMMITMENT CAPITAL MARKET DEBT FISCAL RESOURCES RECEIPTS CAPITAL REQUIREMENTS DEPOSIT INSURANCE FINANCIAL PRODUCTS LENDERS LAND OWNERSHIP RURAL COOPERATIVE BANK LOANS ENTERPRISES FARMERS ELECTRONIC PAYMENTS BANK CREDIT AGRICULTURAL BANK FINANCIAL SYSTEM REAL ESTATE FINANCE LIMITED CREDIT HISTORY BANKS GOVERNMENT SECURITIES GRANT EQUITY RURAL FINANCE FORMAL FINANCIAL INSTITUTION CREDIT ENHANCEMENTS MOVABLE COLLATERAL CAPITAL SMALL ENTERPRISES PUBLIC FUND ACCESS TO FINANCE SUPPLY OF CREDIT DEVELOPMENT BANKS BANK TITLE REGISTRATION CREDIT URBAN AREAS AGRICULTURAL SECTOR FINANCIAL EDUCATION REPAYMENT CREDIT HISTORIES PROPERTY LOAN PORTFOLIO INSURANCE PREMIUM TRANSACTION COSTS GUARANTEE SCHEME CREDIT GUARANTEE AGRICULTURAL ACTIVITIES CREDIT POLICIES AGRICULTURAL DEVELOPMENT BANKS CREDIT UNION SECURITIES GUARANTEE SCHEMES SOLVENCY COOPERATIVE BANK MICROCREDIT ACCREDITATION UNREGULATED FINANCIAL INSTITUTIONS PROFITABILITY CREDIT RISK ACCESS TO CREDIT MICROFINANCE ECONOMIC DEVELOPMENT AGRICULTURAL PRODUCTS INTERESTS BANK LOAN INTEREST RATE CEILINGS SECURITY ECONOMIES OF SCALE INVESTMENT CREDIT GUARANTEES FINANCIAL INTERMEDIARIES COMMERCIAL BANKS HOUSEHOLDS PAYMENT SERVICES COLLATERAL CAPITAL REQUIREMENT COOPERATION RURAL FINANCING EMPLOYEE PRIVATE INVESTORS COOPERATIVES DEVELOPMENT FINANCE EARNINGS WAREHOUSES INVESTMENTS BORROWING FINANCIAL SUPPORT RISK MANAGEMENT AGRICULTURAL FINANCE FINANCIAL KNOWLEDGE ACCESS POINTS COLLATERAL REFORM FEES REGISTRATION SYSTEMS PUBLIC BANKS OUTREACH FIXED COST BANK BRANCHES PUBLIC BANK CREDIT HISTORY FORMAL CREDIT COOPERATIVE GUARANTEE DEVELOPMENT BANK REAL PROPERTY RISK MITIGATION CREDIT INITIATIVES DEPOSITOR FISCAL LOSSES INEQUALITY CREDIT ASSOCIATIONS |
| spellingShingle |
MONEY LENDERS LINE OF CREDIT DEPOSIT FINANCIAL SERVICES BORROWER WAREHOUSE DEPOSITS RURAL CLIENTS PEOPLE AGRICULTURAL DEVELOPMENT BANK SMALL BANKS AGRICULTURAL CREDIT RURAL BORROWERS FINANCING MINIMUM WAGE FARMER INTEREST COMMODITY EXCHANGE GUARANTEES FINANCE COMPANIES SAVINGS ACCOUNTS INTEREST RATE PROPERTY RIGHTS BANKING SYSTEM DEBT MANAGEMENT FINANCIAL PROVIDERS RURAL CREDIT CREDIT COOPERATIVES LENDING PORTFOLIO LOAN CREDITWORTHINESS BORROWERS SUBSIDY PAYMENTS CREDIT PORTFOLIO SAVING INFORMATION SYSTEMS INTERNATIONAL BANK DEVELOPMENT FINANCE INSTITUTION LENDER MICROFINANCE INSTITUTIONS CREDIT UNDERWRITING PRIVATE FINANCIAL INSTITUTIONS FUNDING SOURCES PUBLIC CREDIT ECONOMIC ACTIVITY ADMINISTRATIVE REFORMS CREDITS SAVINGS MORTGAGES FINANCIAL SUSTAINABILITY TECHNICAL ASSISTANCE PUBLIC-PRIVATE PARTNERSHIP FINANCIAL INSTITUTION MORAL HAZARD PARTIAL CREDIT ACCESS TO FORMAL CREDIT CONSUMER CREDIT LOAN PRODUCTS UNION PUBLIC FUNDS USURY ECONOMIC COOPERATION BANK OFFICES INTEREST RATES DEPOSIT ACCOUNTS PAYMENT FINANCIAL INSTITUTIONS SOCIAL COMMITMENT CAPITAL MARKET DEBT FISCAL RESOURCES RECEIPTS CAPITAL REQUIREMENTS DEPOSIT INSURANCE FINANCIAL PRODUCTS LENDERS LAND OWNERSHIP RURAL COOPERATIVE BANK LOANS ENTERPRISES FARMERS ELECTRONIC PAYMENTS BANK CREDIT AGRICULTURAL BANK FINANCIAL SYSTEM REAL ESTATE FINANCE LIMITED CREDIT HISTORY BANKS GOVERNMENT SECURITIES GRANT EQUITY RURAL FINANCE FORMAL FINANCIAL INSTITUTION CREDIT ENHANCEMENTS MOVABLE COLLATERAL CAPITAL SMALL ENTERPRISES PUBLIC FUND ACCESS TO FINANCE SUPPLY OF CREDIT DEVELOPMENT BANKS BANK TITLE REGISTRATION CREDIT URBAN AREAS AGRICULTURAL SECTOR FINANCIAL EDUCATION REPAYMENT CREDIT HISTORIES PROPERTY LOAN PORTFOLIO INSURANCE PREMIUM TRANSACTION COSTS GUARANTEE SCHEME CREDIT GUARANTEE AGRICULTURAL ACTIVITIES CREDIT POLICIES AGRICULTURAL DEVELOPMENT BANKS CREDIT UNION SECURITIES GUARANTEE SCHEMES SOLVENCY COOPERATIVE BANK MICROCREDIT ACCREDITATION UNREGULATED FINANCIAL INSTITUTIONS PROFITABILITY CREDIT RISK ACCESS TO CREDIT MICROFINANCE ECONOMIC DEVELOPMENT AGRICULTURAL PRODUCTS INTERESTS BANK LOAN INTEREST RATE CEILINGS SECURITY ECONOMIES OF SCALE INVESTMENT CREDIT GUARANTEES FINANCIAL INTERMEDIARIES COMMERCIAL BANKS HOUSEHOLDS PAYMENT SERVICES COLLATERAL CAPITAL REQUIREMENT COOPERATION RURAL FINANCING EMPLOYEE PRIVATE INVESTORS COOPERATIVES DEVELOPMENT FINANCE EARNINGS WAREHOUSES INVESTMENTS BORROWING FINANCIAL SUPPORT RISK MANAGEMENT AGRICULTURAL FINANCE FINANCIAL KNOWLEDGE ACCESS POINTS COLLATERAL REFORM FEES REGISTRATION SYSTEMS PUBLIC BANKS OUTREACH FIXED COST BANK BRANCHES PUBLIC BANK CREDIT HISTORY FORMAL CREDIT COOPERATIVE GUARANTEE DEVELOPMENT BANK REAL PROPERTY RISK MITIGATION CREDIT INITIATIVES DEPOSITOR FISCAL LOSSES INEQUALITY CREDIT ASSOCIATIONS Gutierrez, Eva Reddy, Rekha Expanding Opportunities for Rural Finance in Colombia |
| geographic_facet |
Latin America & Caribbean Colombia |
| description |
The purpose of this note is to provide
policy recommendations to improve access to credit of rural
populations and small agricultural producers under
financially sustainable schemes. Although the agricultural
sector remains an important source of employment,
agricultural credit is a small fraction of commercial credit
in Colombia. The share of agricultural credit in Colombia is
below levels observed in other countries in the region.
Colombian commercial banks have limited credit volume in
rural areas, concentrating their lending activities on more
profitable urban populations. General deposit warehouses and
the agricultural commodity exchange (Bolsa Mercantil de
Colombia (BMC)) provide funding for agricultural activities,
but they are underdeveloped compared to regional peers and
serve medium and large size producers. Overall use of
mobile- and internet-based payment financial products
remains low in rural Colombia. According to 2014 Findex
survey data, just two percent of adults report using mobile
banking, defined as a mobile platform for making
transactions from an account at a financial institution.
Public credit guarantee system (FAG) coverage should be
modified to incentive the use of mobile guarantees and
agricultural insurance. This will ensure that financial
institutions have only covered tail risks, providing
incentives to use mobile guarantees. |
| format |
Report |
| author |
Gutierrez, Eva Reddy, Rekha |
| author_facet |
Gutierrez, Eva Reddy, Rekha |
| author_sort |
Gutierrez, Eva |
| title |
Expanding Opportunities for Rural Finance in Colombia |
| title_short |
Expanding Opportunities for Rural Finance in Colombia |
| title_full |
Expanding Opportunities for Rural Finance in Colombia |
| title_fullStr |
Expanding Opportunities for Rural Finance in Colombia |
| title_full_unstemmed |
Expanding Opportunities for Rural Finance in Colombia |
| title_sort |
expanding opportunities for rural finance in colombia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/01/25835297/expanding-opportunities-rural-finance-colombia http://hdl.handle.net/10986/23766 |
| _version_ |
1764454711734304768 |
| spelling |
okr-10986-237662021-04-23T14:04:17Z Expanding Opportunities for Rural Finance in Colombia Gutierrez, Eva Reddy, Rekha MONEY LENDERS LINE OF CREDIT DEPOSIT FINANCIAL SERVICES BORROWER WAREHOUSE DEPOSITS RURAL CLIENTS PEOPLE AGRICULTURAL DEVELOPMENT BANK SMALL BANKS AGRICULTURAL CREDIT RURAL BORROWERS FINANCING MINIMUM WAGE FARMER INTEREST COMMODITY EXCHANGE GUARANTEES FINANCE COMPANIES SAVINGS ACCOUNTS INTEREST RATE PROPERTY RIGHTS BANKING SYSTEM DEBT MANAGEMENT FINANCIAL PROVIDERS RURAL CREDIT CREDIT COOPERATIVES LENDING PORTFOLIO LOAN CREDITWORTHINESS BORROWERS SUBSIDY PAYMENTS CREDIT PORTFOLIO SAVING INFORMATION SYSTEMS INTERNATIONAL BANK DEVELOPMENT FINANCE INSTITUTION LENDER MICROFINANCE INSTITUTIONS CREDIT UNDERWRITING PRIVATE FINANCIAL INSTITUTIONS FUNDING SOURCES PUBLIC CREDIT ECONOMIC ACTIVITY ADMINISTRATIVE REFORMS CREDITS SAVINGS MORTGAGES FINANCIAL SUSTAINABILITY TECHNICAL ASSISTANCE PUBLIC-PRIVATE PARTNERSHIP FINANCIAL INSTITUTION MORAL HAZARD PARTIAL CREDIT ACCESS TO FORMAL CREDIT CONSUMER CREDIT LOAN PRODUCTS UNION PUBLIC FUNDS USURY ECONOMIC COOPERATION BANK OFFICES INTEREST RATES DEPOSIT ACCOUNTS PAYMENT FINANCIAL INSTITUTIONS SOCIAL COMMITMENT CAPITAL MARKET DEBT FISCAL RESOURCES RECEIPTS CAPITAL REQUIREMENTS DEPOSIT INSURANCE FINANCIAL PRODUCTS LENDERS LAND OWNERSHIP RURAL COOPERATIVE BANK LOANS ENTERPRISES FARMERS ELECTRONIC PAYMENTS BANK CREDIT AGRICULTURAL BANK FINANCIAL SYSTEM REAL ESTATE FINANCE LIMITED CREDIT HISTORY BANKS GOVERNMENT SECURITIES GRANT EQUITY RURAL FINANCE FORMAL FINANCIAL INSTITUTION CREDIT ENHANCEMENTS MOVABLE COLLATERAL CAPITAL SMALL ENTERPRISES PUBLIC FUND ACCESS TO FINANCE SUPPLY OF CREDIT DEVELOPMENT BANKS BANK TITLE REGISTRATION CREDIT URBAN AREAS AGRICULTURAL SECTOR FINANCIAL EDUCATION REPAYMENT CREDIT HISTORIES PROPERTY LOAN PORTFOLIO INSURANCE PREMIUM TRANSACTION COSTS GUARANTEE SCHEME CREDIT GUARANTEE AGRICULTURAL ACTIVITIES CREDIT POLICIES AGRICULTURAL DEVELOPMENT BANKS CREDIT UNION SECURITIES GUARANTEE SCHEMES SOLVENCY COOPERATIVE BANK MICROCREDIT ACCREDITATION UNREGULATED FINANCIAL INSTITUTIONS PROFITABILITY CREDIT RISK ACCESS TO CREDIT MICROFINANCE ECONOMIC DEVELOPMENT AGRICULTURAL PRODUCTS INTERESTS BANK LOAN INTEREST RATE CEILINGS SECURITY ECONOMIES OF SCALE INVESTMENT CREDIT GUARANTEES FINANCIAL INTERMEDIARIES COMMERCIAL BANKS HOUSEHOLDS PAYMENT SERVICES COLLATERAL CAPITAL REQUIREMENT COOPERATION RURAL FINANCING EMPLOYEE PRIVATE INVESTORS COOPERATIVES DEVELOPMENT FINANCE EARNINGS WAREHOUSES INVESTMENTS BORROWING FINANCIAL SUPPORT RISK MANAGEMENT AGRICULTURAL FINANCE FINANCIAL KNOWLEDGE ACCESS POINTS COLLATERAL REFORM FEES REGISTRATION SYSTEMS PUBLIC BANKS OUTREACH FIXED COST BANK BRANCHES PUBLIC BANK CREDIT HISTORY FORMAL CREDIT COOPERATIVE GUARANTEE DEVELOPMENT BANK REAL PROPERTY RISK MITIGATION CREDIT INITIATIVES DEPOSITOR FISCAL LOSSES INEQUALITY CREDIT ASSOCIATIONS The purpose of this note is to provide policy recommendations to improve access to credit of rural populations and small agricultural producers under financially sustainable schemes. Although the agricultural sector remains an important source of employment, agricultural credit is a small fraction of commercial credit in Colombia. The share of agricultural credit in Colombia is below levels observed in other countries in the region. Colombian commercial banks have limited credit volume in rural areas, concentrating their lending activities on more profitable urban populations. General deposit warehouses and the agricultural commodity exchange (Bolsa Mercantil de Colombia (BMC)) provide funding for agricultural activities, but they are underdeveloped compared to regional peers and serve medium and large size producers. Overall use of mobile- and internet-based payment financial products remains low in rural Colombia. According to 2014 Findex survey data, just two percent of adults report using mobile banking, defined as a mobile platform for making transactions from an account at a financial institution. Public credit guarantee system (FAG) coverage should be modified to incentive the use of mobile guarantees and agricultural insurance. This will ensure that financial institutions have only covered tail risks, providing incentives to use mobile guarantees. 2016-02-25T23:23:57Z 2016-02-25T23:23:57Z 2015-12 Report http://documents.worldbank.org/curated/en/2016/01/25835297/expanding-opportunities-rural-finance-colombia http://hdl.handle.net/10986/23766 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work Latin America & Caribbean Colombia |