Table 6 Segments of the financial system by degree of formality in Paper’s context

Formal financial system

Formal Financial sector (Deposit Banks)

Formal banks

Commercial and development banks

Large businesses, Government

Semi-formal and informal financial systems

IMF Definition of Financial System from International Financial Statistics (IFS)

Semi-formal financial sector (Other Financial Institutions)

Specialized non-bank financial institutions

Licensed by central bank

Rural banks, Post banks, Saving and Loan Companies, Deposit taking Micro Finance banks

Large rural enterprises, Salaried Workers, Small and medium enterprises

Other non-bank financial institutions

Legally registered but not licensed as financial institution by central bank and government

Credit Unions, Micro Finance NGOs

Microenterprises, Entrepreneurial poor

Missing component in IFS definition

Informal financial sector

Informal banks

Not legally registered at national level (though may be linked to a registered association)

Savings collectors, Savings and credit associations, Money lenders

Self-employed poor