The Economics of Banking and Finance in Africa Developments in Africa’s Financial Systems

This book evaluates the characteristics and developments in Africa’s financial systems, including monetary policy, structured finance, sustainable finance and banking, FinTech, RegTech, SupTech, inclusive finance, the role of regulation in dealing with banking crises, the impact of the COVID-19 pandemic on Africa’s financial systems and how to reform the post-COVID-19 financial systems. It is made up of contributions from scholars in finance and economics as well as financial market practitioners.

Banking and the financial markets play a significant role in the growth of various economies. Although a number of handbooks on banking and finance exist, they mainly focus on Europe, America and Asia. Banks and financial markets in Africa are confronted with different challenges and therefore present a unique case to understand Africa’s financial systems. A number of African countries have experienced banking crises and it is important to examine these issues as well as the regulatory regimes required to address them. This edited book contributes to the limited texts in the area by providing a comprehensive resource on banking and finance for students, scholars, researchers, policymakers, and financial market practitioners. It contains various theoretical and empirical chapters on banking and finance in Africa.

PART I: Overview of Banking and Finance.- 1. Introduction: An Overview of Africa’s Financial Systems.- PART II: FinTech, Financial Inclusion and Banking Sector Development.- 2. Inflation, Interest Rates and Exchange Rates in Africa.- 3. Bank Market Structure and Competition in Africa.- 4. Financial Inclusion, Banking Sector Development and Financial Stability in Africa.- 5. FinTech and the Future of Banks and Financial Services in Africa.- PART III: Central Bank and Monetary Policy.- 6. Central Bank Independence, Exchange Rate Regime, Monetary Policy and Inflation in Africa.- 7. Monetary Policy, Central Banks’ Independence and Financial Development in Africa.- 8. Monetary Policy, Institutions and Bank Market Power in Africa.- 9. Monetary Policy and Bank Risk-Taking in Africa.- 10. Bank Pricing Behaviour, Monetary Policy and Inclusive Finance in Africa.- PART IV: Structured Finance, Sustainable Finance and Islamic Banking.- 11. Structured Finance in Africa.- 12. Sustainable Finance andBanking in Africa.- 13. Islamic Banking and Finance in Africa.- PART V: Banking Crises and Global Banking.-14. Explaining Banking Failures in Africa.- 15. Banking Crises and Cross-Border Bank Expansion in Africa.- 16. Cross-Border Banking, Bank Pricing and Financial Inclusion in Africa.- 17. Current Issues in Global Banking and Implications for African Banks.- PART VI: Banking Regulation and Supervision.- 18. Risk Management and Compliance in Banking in Africa.- 19. Corporate Governance, Regulation and Bank Stability in Africa.- 20. Macro-Prudential Regulation, Monetary Policy and Systemic Banking Crises in Africa.- 21. Recent Developments in Banking Regulation and Supervision.- 22. “Playing Catch-up: Regulators’’ Adoption of SupTech and RegTech in Keeping up to FinTech in Africa.- PART VII: Non-Bank Financial Markets.- 23. Sustainability and Growth of Microfinance Institutions in Africa.- 24. Insurance Markets in Africa.- 25. Pension Markets in Africa.- 26. On the Determinants ofStock Market Development in Africa .- 27. Bond Market Development in Africa: Determinants and Key Issues.- 28. Capital Market Development, Foreign Direct Investment and Infrastructure Development.- 29. Foreign Capital Flows, Domestic Capital Markets and Energy in Africa .- 30. COVID-19 Pandemic and Africa’s Financial Systems: How do we reform the Post-COVID-19 Financial Systems?

Joshua Yindenaba Abor  is a financial economist, Professor of Finance and former Dean at University of Ghana Business School. He is an External Fellow at the Centre for Global Finance, SOAS University of London. He has held Visiting Scholar positions at the IMF and is a member of the Monetary Policy Committee of the Bank of Ghana.

Charles Komla Delali Adjasi is a Professor of Development Finance and Economics at Stellenbosch University Business School, where he was former Head of Development Finance Programmes. He is an Afreximbank Research Fellow, a Visiting Professor at ENSEA Cote d’Ivoire and was previously a Visiting Professor/Scholar at University of Groningen and the IMF.