Mobilizing personal savings

Corporate savings tend to be limited in many developing countries, especially the low-income countries, because of the smallness of the private sector. The bulk of savings is held by the non-corporate sector: households and unincorporated businesses. Effective resource mobilization by the private sector would require encouraging households to hold the major part of their savings in the form of financial assets, and to replace direct, personal and informal credit transactions by indirect, formal credit arrangements.