Full sustainability of rural financial institutions includes the notion that the institution and its services will be available in the long run. However, an institution with a high financial self-sufficiency that relies on government resources may turn out to be unsustainable despite adequate profits and high operational self-sufficiency ratios if these resources are suddenly withdrawn, as has been the case in many countries. Donor and government funding is never sustainable. Thus, institutions relying on these sources of funds will eventually experience a serious problem to their survival. Self-reliance is not stressed in rural financial institutions. Self-reliance is measured by the internal resources ratio, referring to the extent to which an organization mobilizes its own financial resources internally instead of depending on other sources. Financially self-reliant financial institutions are characterized by systems that mobilize, allocate, and spend public resources effectively, efficiently, equitably, and with accountability. The end result is improved living standards and more stable, resilient societies.

Financing self-reliance (FSR) signals an intentional shift in the way financial institutions program to better-understand and address the financing challenges and opportunities developing countries encounter on their journey to self-reliance. FSR provides an approach to help countries overcome systemic constraints to mobilizing and managing financial resources, and transforming those investments into sustainable development outcomes. This issue calls innovative papers that answer the following questions:

(1) What alternative financing models will improve the financial sustainability of rural financial institutions?

(2) Are there systemic factors that constrain sustainable financing which affect financial sustainability of rural financial institutions?

(3) Are those constraints economy-wide or sector-specific?

(4) Is there a role for government to help alleviate or eliminate these constraints to enhance financial sustainability of rural financial institutions?

(5) Is there any self-reliance disparity between urban and rural financial institutions to achieve financial sustainability?