Nonperforming Loans In Sub Saharan Africa

Author : Luc Eyraud,Irina Bunda,Jehann Jack,Mr. Tarak Jardak,Rasmane Ouedraogo (Economist),Zhangrui Wang,Torsten Wezel
Publisher : International Monetary Fund
Page : 85 pages
File Size : 50,5 Mb
Release : 2021-06-08
Category : Business & Economics
ISBN : 9781513576510

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Resolving Nonperforming Loans in Sub-Saharan Africa in the Aftermath of the COVID-19 Crisis by Luc Eyraud,Irina Bunda,Jehann Jack,Mr. Tarak Jardak,Rasmane Ouedraogo (Economist),Zhangrui Wang,Torsten Wezel Pdf

Sub-Saharan African countries are facing an unprecedented health and economic crisis that is likely to severely hurt credit quality and raise non-performing loans from already high levels. Banks have a critical role to play not only during the crisis by providing temporarily relief to businesses and households, but also during the recovery by supporting economic activity and facilitating the structural transformations engaged by the pandemic.

Author : Hippolyte Fofack
Publisher : World Bank Publications
Page : 36 pages
File Size : 46,9 Mb
Release : 2005
Category : Banks and banking
ISBN : 9780051110170

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Nonperforming Loans in Sub-Saharan Africa by Hippolyte Fofack Pdf

"This paper investigates the leading causes of nonperforming loans during the economic and banking crises that affected a large number of countries in Sub-Saharan Africa in the 1990s. Empirical analysis shows a dramatic increase in these loans and extremely high credit risk, with significant differences between the CFA and non-CFA countries, and substantially higher financial costs for the latter sub-panel of countries. The results also highlight a strong causality between these loans and economic growth, real exchange rate appreciation, the real interest rate, net interest margins, and interbank loans consistent with the causality and econometric analysis, which reveal the significance of macroeconomic and microeconomic factors. The dramatic increase in these loans is largely driven by macroeconomic volatility and reflects the vulnerability of undiversified African economies, which remain heavily exposed to external shocks. Simulated results show that macroeconomic stability and economic growth are associated with a declining level of nonperforming loans; whereas adverse macroeconomic shocks coupled with higher cost of capital and lower interest margins are associated with a rising scope of nonperforming loans. These results are supported by long-term estimates of nonperforming loans derived from pseudo panel-based prediction models. "--World Bank web site.

Author : Hippolyte L. Fofack
Publisher : Unknown
Page : 128 pages
File Size : 54,9 Mb
Release : 2012
Category : Electronic
ISBN : OCLC:931675151

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Nonperforming Loans in Sub-Saharan Africa by Hippolyte L. Fofack Pdf

This paper investigates the leading causes of nonperforming loans during the economic and banking crises that affected a large number of countries in Sub-Saharan Africa in the 1990s. Empirical analysis shows a dramatic increase in these loans and extremely high credit risk, with significant differences between the CFA and non-CFA countries, and substantially higher financial costs for the latter sub-panel of countries. The results also highlight a strong causality between these loans and economic growth, real exchange rate appreciation, the real interest rate, net interest margins, and interbank loans consistent with the causality and econometric analysis, which reveal the significance of macroeconomic and microeconomic factors. The dramatic increase in these loans is largely driven by macroeconomic volatility and reflects the vulnerability of undiversified African economies, which remain heavily exposed to external shocks. Simulated results show that macroeconomic stability and economic growth are associated with a declining level of nonperforming loans; whereas adverse macroeconomic shocks coupled with higher cost of capital and lower interest margins are associated with a rising scope of nonperforming loans. These results are supported by long-term estimates of nonperforming loans derived from pseudo panel-based prediction models.

Author : Irina Bunda,Luc Eyraud,Zhangrui Wang
Publisher : International Monetary Fund
Page : 23 pages
File Size : 55,7 Mb
Release : 2021-06-08
Category : Business & Economics
ISBN : 9781513583099

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How to Assess the Benefits of Nonperforming Loan Disposal in Sub-Saharan Africa Using a Simple Analytical Framework by Irina Bunda,Luc Eyraud,Zhangrui Wang Pdf

The coronavirus (COVID-19) crisis, which has hit financial systems across Africa, is likely to deteriorate banks’ balance sheets. The largest threat to banks pertains to their loan portfolios, since many borrowers have faced a sharp collapse in their income, and therefore have difficulty repaying their obligations as they come due. This could lead to a sharp increase in nonperforming loans (NPLs) in the short to medium term.

Author : Sandrine Kablan
Publisher : International Monetary Fund
Page : 27 pages
File Size : 46,9 Mb
Release : 2010-06-01
Category : Business & Economics
ISBN : 9781455201198

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Banking Efficiency and Financial Development in Sub-Saharan Africa by Sandrine Kablan Pdf

This study assesses the determinants of banking system efficiency in sub-Saharan Africa (SSA) and asks what, besides the degree of efficiency, explains the low level of financial development in the region. It uses stochastic frontier analysis to measure efficiency and a generalized method of moments system to explain financial development. SSA banks are found to be generally cost-efficient, but nonperforming loans undermine efficiency, which suggests that improvement in the regulatory and credit environments should improve efficiency. The political and the economic environment have held back financial development in SSA.

Author : Mr.Enrique Gelbard,Mr.Sérgio Pereira. Leite
Publisher : International Monetary Fund
Page : 29 pages
File Size : 49,6 Mb
Release : 1999-08-01
Category : Business & Economics
ISBN : 9781451852806

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Measuring Financial Development in Sub-Saharan Africa by Mr.Enrique Gelbard,Mr.Sérgio Pereira. Leite Pdf

This study introduces an index for measuring financial development and a set of six indices representing key characteristics of the financial systems in 38 sub-Saharan African countries. The results show that these countries have made good progress in improving and modernizing their financial systems during the last decade, particularly with regard to financial liberalization and the adoption of indirect instruments of monetary policy. In many countries, however, the range of financial products remains extremely limited, interest rate spreads are wide, capital adequacy ratios are insufficient, judicial loan recovery is a problem, and the share of nonperforming loans is large.

Author : George C. Anayiotos,Hovhannes Toroyan
Publisher : International Monetary Fund
Page : 27 pages
File Size : 54,8 Mb
Release : 2009-11-01
Category : Business & Economics
ISBN : 9781451874044

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Institutional Factors and Financial Sector Development by George C. Anayiotos,Hovhannes Toroyan Pdf

The paper assesses the effects of certain institutional factors on financial sector development in Sub- Saharan Africa (SSA). Data Envelopment Analysis (DEA) is applied to determine the extent to which these institutions affect the financial sector, and to suggest which institutions play a more critical role in each country. Results suggest that institutional factors affect financial depth and access to financial services more than asset quality and profitability (measured by nonperforming loans (NPL) and return on equity (ROE). The results also suggest that depth of credit information has the strongest influence on the NPL ratio, and political stability affects access the most. Based on model findings, policy implications on prioritizing institutional reforms to enhance financial sector development are suggested for individual countries and for country groups.

Author : Ms.Catherine A. Pattillo,Ms.Anne Marie Gulde,Mr.Kevin Joseph Carey,Ms.Smita Wagh,Mr.Jakob Christensen
Publisher : International Monetary Fund
Page : 62 pages
File Size : 49,7 Mb
Release : 2006-08-28
Category : Business & Economics
ISBN : 1589065654

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Sub-Saharan Africa by Ms.Catherine A. Pattillo,Ms.Anne Marie Gulde,Mr.Kevin Joseph Carey,Ms.Smita Wagh,Mr.Jakob Christensen Pdf

Financial sectors in low-income sub-Saharan Africa (SSA) are among the world's least developed. In fact, 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, and constrains growth. This book argues that building efficient and sound financial sectors in SSA countries will improve Africa's economic prospects. Based on a review of the key features of financial systems, it discusses the main obstacles and challenges that financial structures pose for SSA economies and recommends steps that could address major shortcomings in implementing the reform agenda.

Author : Martin Brownbridge,Charles Harvey (M.A.),Augustine Fritz Gockel
Publisher : Africa World Press
Page : 258 pages
File Size : 52,7 Mb
Release : 1998
Category : Business & Economics
ISBN : 0865436932

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Banking in Africa by Martin Brownbridge,Charles Harvey (M.A.),Augustine Fritz Gockel Pdf

This book provides a review of the evolution of the post-independence banking system in Africa. There is a strong focus on the problems of restructuring of banking institutions and the management of the bad and non-performing assets of public sector institutions.

Author : Mr. Mauro Mecagni,Daniela Marchettini,Mr. Rodolfo Maino
Publisher : International Monetary Fund
Page : 39 pages
File Size : 51,9 Mb
Release : 2015-09-16
Category : Business & Economics
ISBN : 9781513501758

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Evolving Banking Trends in Sub-Saharan Africa by Mr. Mauro Mecagni,Daniela Marchettini,Mr. Rodolfo Maino Pdf

Banking in SSA has undergone very significant changes over the last two decades. Financial liberalization and related reforms, upgrades in institutional and more recently the expansion of cross-border banking activities and the rapid development of Pan-African banking groups are signaling greater financial integration and significant changes in the African banking and financial landscape. Nonetheless, excess liquidity in many countries reflects limited lending opportunities and, despite improvements, asset quality and provisioning remain comparatively low. Dollarization has also been a persistent characteristic in several natural resource-dependent economies. This paper discusses key stylized facts and trends of banking development in SSA, looking at a variety of dimensions such as size, depth, soundness, and efficiency. It also assess the rapid expansion of pan-African banking groups, which have overtaken the role of the European and U.S. banks that had traditionally dominated banking activities in SSA, creating significant cross-border networks and becoming the largest participants in new syndicates and large bilateral loans to finance infrastructure development.

Author : Jean-Jacques Deschamps
Publisher : Unknown
Page : 64 pages
File Size : 51,9 Mb
Release : 1997
Category : Banks and banking
ISBN : IND:30000055600252

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Bank Restructuring in Sub-Saharan Africa by Jean-Jacques Deschamps Pdf

Author : Mr. Rodolphe Blavy,Mr. Anupam Basu,Dr. Murat  Yülek
Publisher : International Monetary Fund
Page : 25 pages
File Size : 44,8 Mb
Release : 2004-09-01
Category : Business & Economics
ISBN : 9781451904024

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Microfinance in Africa by Mr. Rodolphe Blavy,Mr. Anupam Basu,Dr. Murat  Yülek Pdf

Based on the experience of selected countries, this paper offers a critical presentation of the development of the microfinance sector in Africa. The paper supports the view that microfinance institutions, especially those engaged in full financial intermediation, complement effectively the banking sector in extending financial services and successfully draw on the rich experience of community-based development and preexisting informal methods of financial intermediation in Africa. Growing linkages between microfinance institutions and the banking system and the dissemination of good practices by nongovernment organizations contribute to the sound development of the sector, supported by regulation and supervision by local authorities.

Author : Mr.Montfort Mlachila,Ahmat Jidoud,Ms.Monique Newiak,Bozena Radzewicz-Bak,Ms.Misa Takebe
Publisher : International Monetary Fund
Page : 79 pages
File Size : 52,6 Mb
Release : 2016-09-14
Category : Business & Economics
ISBN : 9781475536355

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Financial Development in Sub-Saharan Africa by Mr.Montfort Mlachila,Ahmat Jidoud,Ms.Monique Newiak,Bozena Radzewicz-Bak,Ms.Misa Takebe Pdf

This paper discusses how sub-Saharan Africa’s financial sector developed in the past few decades, compared with other regions. Sub-Saharan African countries have made substantial progress in financial development over the past decade, but there is still considerable scope for further development, especially compared with other regions. Indeed, until a decade or so ago, the level of financial development in a large number of sub-Saharan African countries had actually regressed relative to the early 1980s. With the exception of the region’s middle-income countries, both financial market depth and institutional development are lower than in other developing regions. The region has led the world in innovative financial services based on mobile telephony, but there remains scope to increase financial inclusion further. The development of mobile telephone-based systems has helped to incorporate a large share of the population into the financial system, especially in East Africa. Pan-African banks have been a driver for homegrown financial development, but they also bring a number of challenges.

Author : International Monetary Fund. African Dept.
Publisher : International Monetary Fund
Page : 53 pages
File Size : 43,7 Mb
Release : 2018-07-23
Category : Political Science
ISBN : 9781484370421

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Macro-Financial Linkages in Shallow Markets by International Monetary Fund. African Dept. Pdf

Experience from the African Department’s Pilot Countries

Author : West African Institute for Financial and Economic Management
Publisher : Unknown
Page : 234 pages
File Size : 45,9 Mb
Release : 1998
Category : Banks and banking
ISBN : STANFORD:36105121813765

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Issues in Central Banking and Bank Distress by West African Institute for Financial and Economic Management Pdf