IDEAS home Printed from https://ideas.repec.org/p/zbw/uocaef/19851.html
   My bibliography  Save this paper

Saving for Development: A Linkage Model for Informal and Formal Financial Markets

Author

Listed:
  • Seibel, Hans Dieter

Abstract

The policy of development through subsidized credit has largely failed. Development policy is presently being reoriented towards savings mobilization supplement by credit programs based on personal savings. Formal financial markets are ineffective in mobilizing savings in Third World countries as they reach but a small proportion of the population. Most of the rural and urban masses have only access to informal financial markets. The most prominent financial self-help organizations are savings and credit associations, which particularly widespread in West Africa: formal organizations on an informal market.The effectiveness of both formal and informal financial markets is greatly enhanced by linking savings and credit associations to formal financial institutions. The associations are formed into joint and several liability credit groups obtaining group credit for lending to members. After an initial phase of quanitiative growth, they offer consultancy and other services to their members, possibly with the assistance of an aid project, thus contributing to a qualitative development process.

Suggested Citation

  • Seibel, Hans Dieter, 1985. "Saving for Development: A Linkage Model for Informal and Formal Financial Markets," Working Papers 1985,1, University of Cologne, Development Research Center.
  • Handle: RePEc:zbw:uocaef:19851
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/23660/1/1985-1_Linking_Formal_and_Informal_Financial_Institutions.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hans Dieter Seibel, 1996. "Finance formelle et informelle : stratégies de développement des systèmes locaux de financement," Revue Tiers Monde, Programme National Persée, vol. 37(145), pages 97-114.
    2. Seibel, Hans Dieter, 2007. "De la microfinance informelle au linkage banking: interactions entre théorie et practique," Working Papers 2007,1b, University of Cologne, Development Research Center.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:uocaef:19851. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/wskoede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.