Saving Strategies of Rural Households in Eastern Bosnia

Abstract

Savings are essential for protecting and boosting the assets of rural populations. The paper analyses rural households’ saving strategies in eastern Bosnia. It is based on a secondary data and primary information collected by a questionnaire survey carried out in March 2013 with 147 rural households from nine municipalities in eastern Bosnia. The questionnaire focused on saving purposes; access to various saving means, including formal and semi-formal ones; membership in and management of saving/credit groups; and reasons for using formal money deposits (banks). The formal and semiformal sectors are currently not meeting the demand for financial services of all rural households. Survey results showed that 72.8% of respondents prefer keeping their savings as cash at home. Savings are also kept in form of livestock, precious metals and jewellery or invested in buildings. Access of rural households to appropriate saving services is of paramount importance for rural livelihood diversification in Bosnia.