Challenges for Resolution of Banks in Sub-Saharan Africa
While the recent global financial crisis has affected many developed countries, it has had less impact in Africa. Nevertheless, the lessons learned from this crisis are relevant for African countries, especially because banking groups with a head o...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/831841559224344631/Challenges-for-Resolution-of-Banks-in-Sub-Saharan-Africa http://hdl.handle.net/10986/31764 |
| Summary: | While the recent global financial crisis
has affected many developed countries, it has had less
impact in Africa. Nevertheless, the lessons learned from
this crisis are relevant for African countries, especially
because banking groups with a head office in Africa have
grown rapidly and these groups are systemically present in
many of their African host countries. As macroeconomic
conditions have deteriorated in many Sub-Saharan African
countries in the last two years, the question arises whether
the regulatory framework for the financial systems of these
countries is strong enough to face a serious financial
crisis in the future. This paper highlights the twelve
essential characteristics of effective resolution regimes
for financial institutions, as provided by the Key
Attributes. These features should be integrated in the
national resolution frameworks for financial institutions
and tailored to the local circumstances and legal
traditions. For each feature, the paper maps the challenges
for introducing them in resolution regimes for banks in the
Sub-Saharan African region. |
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