Multivariable functions of savings and credit in Menoua, West Cameroon

Abstract

This survey attempts to scientifically examine Menoua Rural Populations’ preoccupations, in the West of Cameroon, as far as the magnitude of supply of savings and the application for loans are concerned. Considering Highly-varied available financial institutions in the area, potential customers weigh the optimum credibility likely to catalyze their choice, on the basis of the following assets: topmost security of deposits, confidentiality, free withdrawal of desired amounts when needs arise and facilitated loans lending process. On the basis of data meticulously collected from the field and scientifically analyzed through two econometric models, namely the supply of savings and the application for loans, a close look at the socio-economic and demographic features, as regards a comparative dissection of facts, releases a genuine stratification of financial sectors, where transactions are commonly carried out. Results obtained show that in the rural area, the fragmentation of the financial market and its extension to other socio-economic sectors enable each peasant to fully play his or her role, in the integration, on the process of comparative advantages. Menoua Rural Area in the West of Cameroon, -thanks to its dynamic spirit of Creativity and ingenuity, -has succeeded in forging a genuine and a really secure crisis exit! The “NJANGI” or “TONTINE” System initiative has been developed, modernized and successfully transplanted as its ethics requires, on the entire Menoua geographical area and even beyond it, all over Cameroon. Although it is an apparently informal Financial Sector, ‘NJANGI” or “TONTINE” Groups are preferred to Modern Financial System, because they strictly respect the norms of local traditions. Peasants, at the time when they have to carry out their financial transactions, ought to make a really mature choice, according to their priorities and future achievements, aimed at, as targets. From this analysis, the conclusion drawn is that, the Menoua Rural World, West Cameroon, in the end, use both Formal and Informal Financial Sectors. The movement of cash swings from the Modern Financial Sector to the Informal one, and vice versa, in specific circumstances, irrespective of the strata of populations, be they an educated folk or not. The supply of savings and applications for loans ostensibly change, depending on transactions. Any of both systems therefore has an intrinsic value! But, on top of these well recognized Channels, some peasants prefer saving rather in nature. Then, a clear disequilibrium is noticed between customers of formal financial institutions and those of informal financial ones.