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This publication, "Financial Exclusion and Community Upgrading" explores the options for low income communities to finance development projects through the private market. Case studies demonstrate that even very low income communities can afford to pay commercial bank rates for upgrading and demonstrate low default rates.
Even so, the regulatory burden on commercial banks, coupled with their unfamiliarity with informal populations results in a "financial exclusion" affecting low-income groups and stagnating development opportunities. Governments can play a role in devising incentive programs to encourage banks to lend to low-income communities.
The book concludes with a specific proposal for Guatemala where the commercial banks are currently highly liquid and interested in opening new market opportunities for low-income communities as clients.