Banking sector competition needs to be boosted in Africa
Competition in the African financial sector needs a boost. This is the main conclusion of a joint publication by the African Development Bank (AfDB) and the World Bank, presented on May 29, 2013 in Marrakesh during the AfDB's 48th Annual meetings.“Financing Africa: Through the Crisis and Beyond”
is a study based on the most recent data and exposes the new trends, successes and failures of the African banking system.
Issa Faye, Manager at the AfDB and co-author of the work, pointed out that banking in Africa has been confronted
numerous challenges. This includes weak banking rates in rural areas.
Faye recommends improving competition and reinforcing regulation (in particular regarding the security of deposits), allowing for consumer banking services to be at the core of banks' development strategies.
Lahbib El Idrissi Lalami, Morocco’s Deputy Director of the Treasury and External Finances,
declared that his country was as a good example of the process through which strong political will enabled a healthy development of the banking sector.