Links Between the Informal and Formal/Semi Formal Financial Sectors in Malawi

"The Study has two main objectives. The first is to investigate complimentary and competitive deposit and credit links between informal and formal/semi-informal financial sectors of the economy of Malawi. The study examines the behaviour of borrowers and lenders under different link relationships and the impact of this on the provision of credit within the financial system. The second objective is to determine the significance of direct links between informal financial situations and formal/semi formal financial institutions with respect to savings mobilization and the process of financial intermediation. Drawing on the results the study then suggests policy measures that may be adopted to further integrated development of the financial sector of the economy of Malawi."