Analyses & Studies
Report | EAIO Economic Newsletter - The banking sector in EAIO
The July's monthly letter by the French Treasury in EAIO focuses on the banking sector in EAIO.
The monthly East Africa and Indian Ocean (EAIO) study has just been published by the SER of Nairobi, with the contribution of the SE of Dar es Salaam. This month's letter focuses on the banking sector in EAIO. Here's a brief description:
The banking sectors in the EAIO region are at different development stages in terms of size, financial inclusion and depth. In recent years, they have benefited from a favourable economic context that has enabled them to expand and consolidate. With the support of donors, countries are gradually aligning themselves with international banking standards by implementing standards that comply with the various levels of the Basel Accords (I to III) and the FATF and EU AML/CFT regulations. Although credit to the private sector has picked up following the pandemic, access to bank financing remains a challenge in the region. In response to inflation and the sharp depreciation of currencies, Central Banks have tightened interest rates, which has had repercussions across the yield curve and slowed lending. Banks in the region remain sufficiently liquid and well capitalised, but asset quality has deteriorated overall, with a rise in non-performing loans. Three countries are still on the FATF's grey list.
Overview (3 pages):
The full study:
- French version only HERE
