BANKING RESILIENCE IN AFRICA: A REVIEW OF STRATEGIES SHIELDING THE CONTINENT'S ECONOMY
Author:
Ayoola Maxwell Alabi, Fuzzy Naomi Oguntoyinbo, Kehinde Mobolaji Abioye, Adesola Adepeju John-Ladega, Anwuli Nkemchor Obiki-Osafiele, Chibuike Daraojimba
This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
This review paper provides an in-depth analysis of the connection between banking resilience and economic growth in Africa. It highlights the critical function of banking resilience in reducing economic shocks, fostering financial inclusion, and encouraging sustainable growth. According to key findings, resilient banking systems support monetary policy transmission, facilitate the absorption of losses during crises, and draw in foreign investment. These factors all help to maintain economic stability. Furthermore, they support SME development, finance infrastructure projects, encourage financial inclusion, facilitate economic diversification, and draw foreign investment to support sustainable growth by facilitating access to finance. In order to increase banking resilience, the paper makes recommendations for policymakers, regulatory agencies, and banking institutions. The study emphasizes the significance of stepping up regulatory oversight, modernizing regulatory frameworks, diversifying revenue sources, and using technology responsibly. Political stability, financial literacy, and international cooperation are also highlighted in fostering banking resilience. In conclusion, it is impossible to overstate the importance of banking resilience for the growth of the African economy. African countries can foster a climate that encourages investment, empowers people and businesses, lessens income inequality, and promotes long-term development by strengthening banking resilience. This paper urges further investigation into topics like the effect of fintech on adaptability and sustainable banking practices in the African context.
Pages | 52-58 |
Year | 2024 |
Issue | 1 |
Volume | 3 |