The Effects of monetary policy on Financial Sector Stability Sub- Sahara Africa. (2008-2022)
- Author
- Tewende, David L.
- Title
- The Effects of monetary policy on Financial Sector Stability Sub- Sahara Africa. (2008-2022)
- Abstract
-
This study assessed the relationship among monetary policy and financial sector stability in Sub-Saharan Africa. Harnessing panel data scrutiny, the researchers found that increases in interest rates had a beneficial effect on financial sector stability, as measured by bank non-performing loans, while increases in foreign direct investment had a negative impact. The research concludes that monetary policy substantially impacts financial stability in this region. It recommends that central banks in Sub-Saharan Africa tighten monetary policy via scaling back money availability and boosting interest rates towards promoting financial sector stability. The study also suggests that countries in the region, including those using multi-currency regimes like Zimbabwe, could consider adopting stronger regional currencies like the rand or kwacha to help achieve greater financial stability.
- Date
- June 2024
- Publisher
- BUSE
- Keywords
- Monetary policy
- Financial sector
- Supervisor
- Mr. Kairiza,
- Item sets
- Department of Economics
- Media
-
Tewende, David L.pdf
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