Pan-African Banks: Opportunities and Challenges for Cross-Border Oversight

By Charles Enoch, Paul Henri Mathieu, Mauro Mecagni, Jorge I Canales Kriljenko

April 30, 2015

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Charles Enoch, Paul Henri Mathieu, Mauro Mecagni, and Jorge I Canales Kriljenko. Pan-African Banks: Opportunities and Challenges for Cross-Border Oversight, (USA: International Monetary Fund, 2015) accessed October 6, 2024

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Pan-African banks are expanding rapidly across the continent, creating cross-border networks, and having a systemic presence in the banking sectors of many Sub-Saharan African countries. These banking groups are fostering financial development and economic integration, stimulating competition and efficiency, introducing product innovation and modern management and information systems, and bringing higher skills and expertise to host countries. At the same time, the rise of pan-African banks presents new challenges for regulators and supervisors. As networks expand, new channels for transmission of macro-financial risks and spillovers across home and host countries may emerge. To ensure that the gains from cross border banking are sustained and avoid raising financial stability risks, enhanced cross-border cooperation on regulatory and supervisory oversight is needed, in particular to support effective supervision on a consolidated basis. This paper takes stock of the development of pan-African banking groups; identifies regulatory, supervisory and resolution gaps; and suggests how the IMF can help the authorities address the related challenges.

Subject: Banking, Basel II, Commercial banks, Cross-border banking, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Financial sector stability, Financial services, Foreign banks

Keywords: Africa, Banking sector, Basel II, BNP Paribas, Central bank, Commercial bank, Commercial banks, Cross-border banking, DP, DPPP, East Africa, Financial crisis, Financial sector stability, Foreign banks, Global, Holding company, Investment bank, Parent company, Sub-Saharan Africa, West Africa

Publication Details

Pages:

102
Volume:

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DOI:

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Issue:

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Series:

Departmental Paper No. 2015/004
Stock No:

PABOCCBOEA
ISBN:

9781498365444
ISSN:

2616-5333

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