The Limits of Commitment : Who Benefits from Illiquid Savings Products?
Working with a private bank in Ghana, this study examines the impacts of a commitment savings product designed to help clients taking repeated overdrafts break their debt cycles. Overall, the product significantly increased savings with the bank wi...
| Main Authors: | , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/145051540998851212/The-Limits-of-Commitment-Who-Benefits-from-Illiquid-Savings-Products http://hdl.handle.net/10986/30654 |
| Summary: | Working with a private bank in Ghana,
this study examines the impacts of a commitment savings
product designed to help clients taking repeated overdrafts
break their debt cycles. Overall, the product significantly
increased savings with the bank without increasing
overdrafts. However, after accounting for other sources of
savings, the study finds that clients with above-median
baseline overdraft histories do not accrue new savings
during the commitment period. Rather, they draw down other
savings to offset the committed amount and take on new debt.
In contrast, individuals with below-median overdraft
histories significantly increase savings during and after
the commitment period. |
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