A Building Block Approach for Financial Regulation and Supervision in Africa

Due to its pivotal importance for economic development, financial system development has long been on the agenda of most African low-income countries (LICs). Governments have sought to expand the provision of financial services (financial deepening) and to facilitate access to services for low-income groups as well as for micro and small enterprises on affordable terms (financial inclusion). The renewed focus on financial stability offers an opportunity for LICs to revisit the state of regulation and supervision in their countries. This paper explores the current challenges of financial regulation and supervision in LICs with a regional focus on Sub-Saharan Africa.