Save the Date! MFW4A Webinar on Interest Rate Caps - 18 October 2018
Interest Rate Caps in Africa: The Theory and the Practice
Making Finance Work for Africa (MFW4A), in partnership with Economists from the World Bank, is pleased to present a webinar titled ''Interest Rate Caps in Africa: The Theory and the Practice'', on October 19th, 2018 at 01:00 pm GMT (09:00 am | Washington ; 04:00 pm | Nairobi).
Interest rate ceilings are generally used as policy instrument to protect borrowers (consumers) and promote financial inclusion through credit offers that are supposed to be affordable for all economic agents. However, empirical evidence has very often shown that this policy instrument produces adverse effects. Several countries in Africa have introduced interest rate caps in recent years.
Overall the results have not been supportive of the intended policy objectives. By deciding to cap interest rates, often governments have encouraged banks to take commercial measures to retain mostly their large companies, increase their financing supply to Treasury and consequently reduce their funding to households and SMEs.
The decision to cap interest rates has in some cases also threatened the survival of many microfinance institutions. In light of these regional impacts, MFW4A is organizing a webinar, in partnership with economists from the World Bank, namely Aurora Ferrari and Oliver Masetti, in order to take stock of recent developments in interest rates caps and classifies them according to a novel taxonomy. The session will also highlight African case studies and alternative measures to reduce the cost of credit.
Keynote Speakers: Aurora Ferrari - Oliver Masetti (World Bank Group)
Moderator: Hugues Kamewe-Tsafack, MFW4A