What is the current state of banking regulation across African countries?
Banking
Asked by Question Bot07/Aug/20151 answer
1 Answer
F
Faisal Khan
Answered 07/Aug/2015
Its mixed at best. African central bankers would like to see a more mature banking environment, however politics and vested interests dissuade this from happening.
Majority of the regulations are good for the African countries and/or their respective country. There is harmony amongst the African nations and they do have some regional central banks that collaborate (like the Bank of Central African States, Central Bank of Wester African States and West African Economic and Monetary Union)*
African Central Bank Governors are very proactive in trying to ease hurdles in the flow of money across borders, and yet at the same time trying to pacify Western Central Banks on their approach and methodology of doing so (key issues: AML, KYC and lets not forget's Africa's extreme natural resources wealth and vested interests).
Retail and Commercial banking regulations are sufficient, however, they can be improved drastically. Kenya, South Africa, Egypt, Morocco, Nigeria and Tanzania are perhaps the most active central banks trying to have a just and fair system, trying to find that sweet spot between liberal policies and regulations.
Most of the other African nations either looks around in their region and follow the model, or borrow models from other central banks (Singapore, HK, various EU banks, India, etc.)
All in all, like the road infrastructure, there are good roads and bad roads, same can be said of banking. In closing, what can be said with confidence, is that they are heading in the right direction, albeit slowly.
*You can see full list of Central & Reserve Banks here: List of all the Central Banks & Reserve Banks of the World
Majority of the regulations are good for the African countries and/or their respective country. There is harmony amongst the African nations and they do have some regional central banks that collaborate (like the Bank of Central African States, Central Bank of Wester African States and West African Economic and Monetary Union)*
African Central Bank Governors are very proactive in trying to ease hurdles in the flow of money across borders, and yet at the same time trying to pacify Western Central Banks on their approach and methodology of doing so (key issues: AML, KYC and lets not forget's Africa's extreme natural resources wealth and vested interests).
Retail and Commercial banking regulations are sufficient, however, they can be improved drastically. Kenya, South Africa, Egypt, Morocco, Nigeria and Tanzania are perhaps the most active central banks trying to have a just and fair system, trying to find that sweet spot between liberal policies and regulations.
Most of the other African nations either looks around in their region and follow the model, or borrow models from other central banks (Singapore, HK, various EU banks, India, etc.)
All in all, like the road infrastructure, there are good roads and bad roads, same can be said of banking. In closing, what can be said with confidence, is that they are heading in the right direction, albeit slowly.
*You can see full list of Central & Reserve Banks here: List of all the Central Banks & Reserve Banks of the World