The Essential Role of Banks and Credit Unions in Facilitating Lower-Income Household Saving for Emergencies

Recent research has recognized the importance of low- and moderate-income households being able to easily pay for routine unexpected expenditures such as car repairs and emergency dental treatment. And it has linked the unmet emergency savings needs of these households both to their utilization of high-cost credit and to their inability to save for medium- and long-term goals. This paper explores the role of banks and credit unions in helping LMI households build adequate emergency savings.