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

From: The comparative African regional economics of globalization in financial allocation efficiency: the pre-crisis era revisited

Paper’s context Tiers Definitions Institutions Principal Clients
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
  1. Source: Asongu and Acha-Anyi (2017)