We have been experimenting with a new Village Banking system in some areas. In late March, we had our first two villages organized in the new system and we are seeing very positive results. The Village Banking system is different than what we have been doing in the past. Groups of women join together in a village and agree to save a specified amount each month. The group's savings are pooled together and used to provide loans back to themselves. The Village Bank is run by its members and all decisions are made within the group. Common Interest helps create the structure for the group and provides documents like passbooks. Common Interest also provides loans to the Village Bank if it wants to provide more money than what their savings can offer.

Women involved in this programme love it. They are managers of their own money and the new system allows the village to decide what level of risk they find acceptable for loans. Women also gain valuable financial management and leadership skills. Our members have also been telling us that they can work a lot better when the group is 100% female.

The photo above is of our first women's group in the Phrao area of Chiang Mai (The "Better Life Village Bank"). There are 24 women members. The group has already provided 16 loans to each other from their own savings. They have also just received an additional loan of 120 000 baht from Common Interest which will allow their Village Bank to provide more loans to its members.