Community Jury Style Loan Pools As Insurance And Investment Vehicles

Monday, January 24, 2011 - 07:31 in Mathematics & Economics

A potentially new form of public finance and public insurance may lie in institutions of community jury banking.  Jury banking is a new concept, as far as I can tell, though it is a combination of immigrant loan pools, and microfiance schemes.  Immigrant loan pools because immigrants tend to get together as small communities and pool money, lending this money to a single person as startup capital for a business.  THis is why south asian and east asians can afford to buy delis and taxis.  The money the business makes is partially returned to the loan pool and more money is available to new immigrants.  The return rates are high and dafault rates low, because everyone in the pool knows each other.  In the jury finance case, the loan pool is seeded by the state, read more

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