Seeing savings work

Yesterday one of my community banks had its liquidation meeting. It's considered good practice to liquidate each community bank at least once a year, for several reasons: a) members can access the savings they've accumulated; b) new members can join, or anyone who no longer wants to participate can opt out; and c) to avoid accumulating too much money in the bank's cashbox. Many banks will liquidate, and on that same day will start their next year of savings. In the case of this bank, which I started with women leaders from each of Cajabamba's outlying rural communities, we hope to start new banks in each of those communities in January.

Yesterday's liquidation was a proud moment for each of the ladies involved, and also a proud and inspirational moment for me. Almost all the women in this particular bank come from rural areas and make their living by farming. Consequently, saving even 10 soles (about $3.50) per month was a big accomplishment for them, and most had never made a habit of saving in the past. Seven months after we started the community bank, my señoras were wide-eyed to be handed 70 soles, and realize that they themselves had accumulated that money simply by saving. They proudly signed their names as we went down the list of members and emptied the cashbox, and many talked eagerly about the idea of starting a bank in their home communities. We all - me included - left the meeting with satisfied smiles on our faces.