African Financial Sectors and the European Debt Crisis : Will Trouble Blow across the Sahara?
The exposure of African financial sectors to global risks, including the likely fall-out of the on-going European debt crisis, continues to be limited. African financial sectors have received much recognition for their steady growth performance and...
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| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/01/16465231/financing-small-medium-enterprises-republic-south-africa-trouble-blow-across-sahara http://hdl.handle.net/10986/12686 |
| Summary: | The exposure of African financial
sectors to global risks, including the likely fall-out of
the on-going European debt crisis, continues to be limited.
African financial sectors have received much recognition for
their steady growth performance and resilience during and
after the 2008 global financial crisis. Many of the
transmission channels for global risks and financial
contagion to financial sectors in Africa are narrow or of
limited potential influence. This note analysis the recent
performance of African financial sectors, the degree of
their exposure to European banking sector risks, the
observable impact of a decline in global investor
confidence, as well as the link between fiscal and monetary
policy and financial sector development. The analysis in
this paper focuses primarily on the potential impact of the
European debt crisis on the performance of African financial
sectors and the credit intermediation channel. The analysis
both assesses how a transmission channel affects the
stability and solvency of African financial institutions and
how it affects the ability of African firms and governments
to access funding. |
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