Recent Developments in Banking Regulation and Supervision in Africa

Banking regulation and supervision are critical for ensuring a stable and healthy banking system. Recent developments in Africa’s banking industry are influencing regulatory and supervisory changes aimed at enhancing the stability, health, and general performance of the sector in the region. This chapter examines current trends in banking regulation and supervision in Africa. The functions of central banks and regulatory policy are discussed in this chapter, as well as bank regulation and supervision in Africa. Regulations and supervision have had to keep up with the rapid pace of technological change. Central banks have had to change their legislation to include licensing and regulation measures for non-banking financial companies that did not previously come within traditional banking services. Central banks’ responsibilities have also been broadened to include regulation and supervision of technological companies that provide some financial services. Global banking rules, the Basel Principles, and Africa’s financial sector are also covered in this chapter. Following financial crises that often have global ramifications, international rules have been developed to oversee the banking sector. Africa’s financial regulators must embrace international methodologies and standards for governing banks in order to guarantee the stability of the continent’s banking institutions.