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Webinar Replay: Impact of pan-African banks on financial development in sub-Saharan Africa

Apr 15, 2021 | Virtual (Online)

April 15th, 2021 - Making Finance Work for Africa (MFW4A) in partnership with the Development and Economic Growth Research Programme (DEGRP) at ODI: A leading global affairs think tank, hosted a 2-part webinar series based on DEGRP flagship publications.

The second webinar of the series is entitled Impact of pan-African banks on financial development in sub-Saharan Africa.

For more details on this session’s content, the event recording is available below. The webinar presentation can also be downloaded via this link.

Background

Across sub-Saharan Africa there has been a rapid rise of pan-African banks (PABs). These bank subsidiaries headquartered in African countries have expanded their activities across the continent following the retrenchment of traditional European and US banking groups after the global financial crisis. Today, major PABs have a more significant footprint in sub-Saharan Africa than banks from outside the region. This pattern of expansion means these banks are becoming increasingly economically and systemically important in their host economies, indicating how they could be fundamental to Africa’s future financial landscape.

Research on pan-African Banks’ contributions to the continent’s financial development remains scarce. This new synthesis report engages with the available evidence to highlight existing understandings of PABs’ impact on financial inclusion, deepening and stability. The authors also provide insights for policy-making in the region, as well as suggested priorities for future research work.

Key findings include:

  • PABs increase African firms’ access to finance, with the strongest impact on small and large firms and young enterprises
  • PABs tend to have the least cyclical lending behaviour compared to other foreign and domestic banks
  • PABs increase banking competition and efficiency, while also increasing macro-prudential risks

This webinar highlighted the key findings, analysis, and insights of the research.

 

Speakers

Moderators: 

  • Muazu Ibrahim, Research Officer, MFW4A
  • Guy Menan, Research and Knowledge Management, MFW4A

Panellists:

  • Sherillyn Raga, Senior Research Officer, ODI’s International Economic Development Group
  • Judith Tyson, Research Fellow and Development Finance Specialist, ODI’s International Economic Development Group