Paper
Financial Systems in Sub-Saharan Africa: A Comparative Study
How can financial systems be improved?
128 pages
This paper compares eleven financial systems of sub-Saharan Africa over the 1980s and early 1990s in terms of:
- Their performance in monetary management;
- The performance of their banking sectors, the spread of financial distress, and the different methods of financial restructuring used to address this problem;
- Processes of financial deepening and diversification, and assesses the prospects for further financial development;
- The role of informal and semiformal financial mechanisms and institutions.
It recommends that:
- The macro-financial framework has to remain steady;
- The monetary management has to be improved;
- Legal, regulatory and prudential frameworks have to be reformed;
- The supervision has to be strengthened;
- Property rights and contract laws have to be effectively enforced;
- Financial competition has to be increased.
Some sub-Saharan countries have already implemented such policy measures and have successfully reformed their financial system.
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