Financial integration in Africa: implications for monetary policy and financial stability

This paper provides a brief review of Africa’s financial depth and presents an analysis of cross-border integration of banking flows. It further discusses the impact of cross-border financial integration in Africa on the transmission mechanisms of monetary policy. It concludes with a discussion on how the growth of pan-African banking is likely to raise new financial stability issues, notably, the role of home and host country banks as lenders of last resort.