Togo: Selected Issues
IMF Staff Country Reports, July 2, 2019
Source details
- Canonical URL
- Togo: Selected Issues
Other formats
Bibliographic details
- Published: July 2, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498323987.002
Overview and objective
- Investigates state-owned financial institutions’ (SOFIs) performance in developing economies, focusing on Sub-Saharan Africa and the Togolese experience with SOFIs and privatization.
- Context: Togolese government decision to further disengage from the financial sector.
Main findings on SOFIs and financial stability
- SOFIs are typically set up with a public interest and financial inclusion mandate.
- SOFIs tend to weaken financial stability and fiscal discipline in developing economies, especially if they are not typically regulated and supervised on the same basis as other banks.
- Cross-country and Togo-specific evidence indicate improved performance after privatization under certain conditions.
Conditions associated with stronger privatization outcomes
- Performance improves more after privatization when:
- the government fully relinquishes control;
- banks are privatized to strategic investors rather than through share issues;
- bidding is open to all, including foreign banks.
- The success of privatization also hinges on:
- the business environment for competition, governance, and entry;
- banks’ valuation and how policy concerns are dealt with;
- owner’s prudential review quality.
Policy implications for Togo
- Further disengagement from the financial sector should consider:
- ensuring full relinquishment of control where privatization is pursued;
- favoring strategic investors in privatization transactions rather than partial share issues;
- allowing open bidding, including foreign bidders, to improve outcomes;
- strengthening regulatory and supervisory parity between SOFIs and other banks to protect financial stability and fiscal discipline;
- addressing business environment constraints—competition, governance, and entry—and ensuring rigorous prudential review of prospective owners.
Key statistics and publication identifiers
- Publication date: July 2, 2019
- Pages: 49
- Volume: 2019
- Issue: 206
- Series: Country Report No. 2019/206
- DOI: https://doi.org/10.5089/9781498323987.002
- Stock No: 1TGOEA2019002
- ISBN: 9781498323987
- ISSN: 1934-7685
Subjects and keywords
- Subject: Banking, Commercial banks, Corruption, Crime, Economic sectors, Financial institutions, Health, Privatization, State-owned banks
- Keywords: authority, Commercial banks, Corruption, CR, ECF program, education expenditures in Togo, education outlay, frontier, frontier analysis, Global, health performance, ISCR, outlay, Privatization, social spending, spending leakage, State-owned banks, Sub-Saharan Africa, Togo, WAEMU country
International Monetary Fund. African Dept. "Togo: Selected Issues", IMF Staff Country Reports 2019, 206 (2019).
Content in this bundle
- Togo: Selected Issues; IMF Country Report No. 19/206; June 10, 2019