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It works around, not through, the formal banking sector.
The fees shut the poor out of formal banking.
The formal banking sector might not be as strong as it looks, either, the I.M.F.
After the collapse of the government in 1991, the formal banking sector's functions were severely hindered.
Four in five adult Africans do not use formal banking services.
More than 40% of Indians still lie outside the reach of formal banking.
The solution is to regulate financial participants outside the formal banking system.
This may be the best way to service the poor and ensure them access to formal banking.
More enlightened regulators are no longer insisting that these services meet the rigid rules for formal banking.
With the formal banking sector doing well by lending to the government and big companies, small business is neglected.
Opening China's capital account under these circumstances would merely leverage these instability risks in the formal banking sector.
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