Question of the Day [AAPI Heritage Month]: In the world of borrowing and lending, what is a “hui?”

Answer: A traditional Chinese lending circle where a group of people come together to save and borrow money.

Questions:

• How does the structure of a hui compare to traditional banking systems? What advantages and disadvantages can you identify?
• Why is it crucial for the group leader of a hui to be trustworthy?
• How might hui and similar lending circles help promote financial inclusion? Are there ways in which they might fall short?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (WeTrust):

“The Trusted Lending Circle is known as a tanda or cundina in Latin America, as a susu in West Africa, as a hui in China, and as a ROSCA to social scientists. The term “biao hui” (标会 or 標會) is the Chinese term used to describe someone participating in one of these informal lending clubs. According to Wikipedia, most hui are structured such that:

“A particular Hui is usually initiated by a trusted figure/influencer within a community. This person is considered as the group leader and is in charge of recruiting and vetting all participating members. While other participants can also vouch for and extend the invitation to their friends and family members, their participation still requires approval of the group leader.”

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Here are more AAPI Heritage Month resources on the NGPF Website!