{
  "title": "Credit Growth in Sub-Saharan Africa—Sources, Risks, and Policy Responses",
  "publication": "IMF Working Papers, August 1, 2009",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/credit-growth-in-sub-saharan-africa-sources-risks-and-policy-responses-23229",
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  "summary": "In this paper, we analyze credit growth in Sub-Saharan Africa over the past decade focusing on the post-2002 rapid credit growth in select countries.",
  "sections": [
    {
      "heading": "Summary of the paper",
      "content": "- Authors: May Y Khamis, Plamen K Iossifov\n- Publication date: August 1, 2009\n- Core objective: Analyze credit growth in Sub-Saharan Africa over the past decade with a focus on post-2002 rapid credit growth in select countries.\n- Principal approach: Develop regression models of the fundamental determinants of bank credit and use them to examine whether these fundamentals fully explain developments in rapid credit growth countries.\n- Key conclusions:\n  - Rapid credit expansion, whether a manifestation of a credit boom or driven by fundamentals, can give rise to prudential and macroeconomic risks.\n  - The paper details these risks and discusses the choice of policies to mitigate them.\n  - The paper concludes by evaluating the likely impact of the ongoing global recession and financial crisis on credit growth in Sub-Saharan Africa."
    },
    {
      "heading": "Methods and analytical framework",
      "content": "- Regression models of fundamental determinants of bank credit were developed and applied to:\n  - Explain overall credit growth patterns in Sub-Saharan Africa over the past decade.\n  - Test whether fundamentals can fully explain rapid credit growth in selected post-2002 cases."
    },
    {
      "heading": "Findings on credit growth drivers",
      "content": "- The analysis focuses on distinguishing credit expansion explained by fundamentals from rapid credit growth that may constitute a credit boom.\n- The paper identifies that both fundamentals and non-fundamental factors can be associated with rapid credit expansion in post-2002 select countries."
    },
    {
      "heading": "Prudential and macroeconomic risks identified",
      "content": "- Rapid credit expansion can give rise to:\n  - Prudential risks (banking-sector vulnerabilities).\n  - Macroeconomic risks (broader economic imbalances related to credit cycles)."
    },
    {
      "heading": "Policy responses and recommendations",
      "content": "- The paper discusses policy choices to mitigate the identified prudential and macroeconomic risks arising from rapid credit expansion.\n- Policy discussion centers on aligning prudential measures and macroeconomic management to address risks whether credit growth is fundamental-driven or boom-driven."
    },
    {
      "heading": "Assessment of global recession and financial crisis impact",
      "content": "- The paper evaluates the likely impact of the ongoing global recession and financial crisis (as of the paper’s writing) on credit growth in Sub-Saharan Africa.\n\n---\n\n Content in this bundle\n\n- wp09180\n  - wp09180 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp09180 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/credit-growth-in-sub-saharan-africa-sources-risks-and-policy-responses-23229"
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    "Authors: Plamen K Iossifov",
    "Published: August 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451873276.001",
    "Authors: May Y Khamis, Plamen K Iossifov",
    "Publication date: August 1, 2009",
    "Core objective: Analyze credit growth in Sub-Saharan Africa over the past decade with a focus on post-2002 rapid credit growth in select countries.",
    "Principal approach: Develop regression models of the fundamental determinants of bank credit and use them to examine whether these fundamentals fully explain developments in rapid credit growth countries.",
    "Key conclusions:",
    "Regression models of fundamental determinants of bank credit were developed and applied to:",
    "The analysis focuses on distinguishing credit expansion explained by fundamentals from rapid credit growth that may constitute a credit boom.",
    "The paper identifies that both fundamentals and non-fundamental factors can be associated with rapid credit expansion in post-2002 select countries.",
    "Rapid credit expansion can give rise to:",
    "The paper discusses policy choices to mitigate the identified prudential and macroeconomic risks arising from rapid credit expansion.",
    "Policy discussion centers on aligning prudential measures and macroeconomic management to address risks whether credit growth is fundamental-driven or boom-driven.",
    "The paper evaluates the likely impact of the ongoing global recession and financial crisis (as of the paper’s writing) on credit growth in Sub-Saharan Africa.",
    "**_wp09180**"
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