US-Guatemala Remittance Corridor

US-Guatemala Remittance Corridor

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This study gives an overview of the intermediation of worker remittance flows from the United States to Guatemala. In contrast to other remittance corridors in the world, most transfers in this corridor are channeled in the United States through the formal sector, and distributed in Guatemala through the banking system. However, both senders and receivers have little access to financial products and services. This study argues that in a country characterized by high income inequality and low and concentrated access to credit, the large role played by domestic banks in distributing remittances seems promising in terms of creating a point of contact that could lead to cross-sales of other financial services. The report also argues that authorities have an important coordination and catalytic role to play, for increased efficiency in remittance intermediation, fostering competition, and ultimately highlighting the potential for greater access. The report concludes with specific avenues for further policy action in terms of transparency, regulatory environment, financial literacy and access, riska€œA Technical Guide to Remittances: The Credit Union Experience.a€ World Council of Credit Unions, Inc. (WOCCU). De Luna MartAsnez, JosAc. ... University of Southern California, California; and State University, Los Angeles. HernAindez- Cossanbsp;...

Title:US-Guatemala Remittance Corridor
Publisher:World Bank Publications - 2006-01-01


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