Predicting the risk of bank deterioration: a case study of the Economic and Monetary Community of Central Africa

Preventing the risk of bank distress is a fundamental concern for political decisionmakers and bank supervisory authorities in view of the important role that banks play in the economic system. Indeed, banking institutions play the role of financial intermediaries and enable a better allocation of financial resources that are indispensable to the economy. At the same time, they provide financial services to their customers, such as money transfers, advice, and manual exchange. In many developing countries where the financial system is still in its infancy (high debt economies), the banks are one of the main source of funding for the economy. Hence, the necessity for such countries to have solid banking institutions capable of providing sound and sustainable funding for economic activities.

Title: Predicting the risk of bank deterioration: a case study of the Economic and Monetary Community of Central Africa
Authors: Kouezo, Barthelemy
Koulet-Vickot, Mesmin
Yamb, Benjamin
Year: 2013
Issue: 265
Pages: 73
Language: English
Series: AERC research paper
City of publisher: Nairobi
Publisher: African Economic Research Consortium
ISBN: 9789966023469
Geographic term: Central Africa
External link: https://aercafrica.org/wp-content/uploads/2018/07/RP265.pdf
Abstract: Preventing the risk of bank distress is a fundamental concern for political decisionmakers and bank supervisory authorities in view of the important role that banks play in the economic system. Indeed, banking institutions play the role of financial intermediaries and enable a better allocation of financial resources that are indispensable to the economy. At the same time, they provide financial services to their customers, such as money transfers, advice, and manual exchange. In many developing countries where the financial system is still in its infancy (high debt economies), the banks are one of the main source of funding for the economy. Hence, the necessity for such countries to have solid banking institutions capable of providing sound and sustainable funding for economic activities.