Africa: Why Bank of Uganda Reinforces Regulation of Pan-African Banks

Apr 27, 2017 | The Monitor; All Africa

This is to enable regular and proactive interaction and sharing of information on these institutions.

To guard against risks that may arise from pan-African banks, Bank of Uganda (BoU) has signed various Memoranda of Understanding (MoU) with supervisors of commercial banks with presence in the country to enable regular and proactive interaction and sharing of information on these institutions. Africa-based banks are expanding across the continent and now dominate the banking sector in many countries. These pan-African banks are establishing cross-border networks and overtaking the European and US banks, which traditionally dominated banking on the continent. Unlocking the potential The new pan-African players are driving the expansion of financial services and economic integration in helping unlock the huge potential of a fast-growing region. The advantages related to pan-African banks are numerous in the sense that the economies of both host and home countries receive numerous benefits from cross-border banking. Increased efficiency The International Monetary Fund (IMF) says the rise of the pan-African banks has increased competition and efficiency, introduced product innovation and more modern management and information systems, and brought higher skills and expertise to host banking sectors. A number of pan-Africa banks have exported innovative business models and delivery channels, such as mobile banking by Kenyan institutions, to host countries. Read more on All Africa. Source: All Africa