Sub-Saharan Africa: Financial Sector Challenges
Books, August 28, 2006
Source details
- Canonical URL
- Sub-Saharan Africa: Financial Sector Challenges
Other formats
Bibliographic details
- Authors: Catherine A Pattillo, Anne Marie Gulde, Kevin J Carey, Smita Wagh, Jakob E Christensen
- Published: August 28, 2006
- Series: Books
- DOI: https://doi.org/10.5089/9781589065659.071
Overview
- Financial sectors in low-income sub-Saharan Africa (SSA) are among the world's least developed.
- Assets in most low-income African countries are smaller than those held by a single medium-sized bank in an industrial country.
- The absence of deep, efficient financial markets:
- seriously challenges policy making,
- hinders poverty alleviation,
- constrains growth.
- The book argues that building efficient and sound financial sectors in SSA countries will improve Africa's economic prospects.
Key themes and analysis
- Review of the key features of financial systems in SSA.
- Identification of main obstacles and challenges that current financial structures pose for SSA economies.
- Discussion of how financial market underdevelopment affects:
- banking and commercial banks,
- credit and credit constraints,
- financial institutions and financial services,
- financial markets, including stock markets and money markets,
- portfolio diversification and lending.
- Use of survey evidence and credit information indices to inform the assessment.
Findings
- Financial market depth and efficiency are severely limited across low-income SSA countries.
- Relative size of financial assets in most low-income SSA countries is extremely small compared with banks in industrial countries.
- Financial sector weaknesses have direct consequences for economic policy effectiveness, poverty alleviation, and growth prospects.
Policy recommendations and reform agenda
- Implement steps to build efficient and sound financial sectors in SSA to improve economic prospects.
- Address major shortcomings identified in financial structures and in the implementation of reforms.
- Strengthen financial market infrastructure to alleviate credit constraints and support lending and portfolio diversification.
Publication and metadata
- Authors: Catherine A Pattillo, Anne Marie Gulde, Kevin J Carey, Smita Wagh, Jakob E Christensen
- Publication date: August 28, 2006
- Pages: 57
- ISBN: 9781589065659
- DOI: https://doi.org/10.5089/9781589065659.071
- Stock No: SSAFEA
Source: https://www.imf.org/en/publications/books/issues/2016/12/31/sub-saharan-africa-financial-sector-challenges-19293