THE COMPLEMENTARY ROLE OF NON-BANK FINANCIAL INSTITUTIONS (NBFIS) IN SIERRA LEONE FINANCIAL INTERMEDIATION SPACE: A CASE STUDY OF NATIONAL CORPORATIVE DEVELOPMENT BANK, SIERRA LEONE

Abstract

In the past, little or no attention was directed to the informal sector in the development agenda in Sierra Leone. The inability of the formal sector to absorb all the available resources in the country has led to the rapid growth of the neglected informal sector. The aim of this research is to assess and evaluate the role played by the National Cooperative Development Bank as a Non-Bank Financial Microfinance Institution in providing financial services to class of economically poor people in the Western Area whom hitherto were been neglected by the formal sector. A sample of 30 “Barrays” with each constituting 5 members totaling to 150 respondents were thoroughly investigated 2001 to 2005. The OLS econometrics estimation technique was used to analyse the data employing a Probit Regression model. The result reveals that the probability of access to credit is increased if the individual is a; trader, self employed, widow and with increases in the initial amount deposited which was used as a proxy