The Cross Border Expansion of African Large Financial Conglomerates: Implications for Regional Financial Stability and Regulatory Reform
Inutu Lukonga and Kay Chung, International Monetary Fund (IMF)
The global financial crisis has reignited interest in Large Financial Conglomerates (LFCs). However, attention has focused on industrial countries while the cross border expansion of LFCs from Africa is taking place unnoticed, nor are the stability implications well understood. This paper tries to fill the gap by documenting the trends and characteristics of these regional LFCs, analyzes the stability risks that the groups pose, and identifies regulatory reforms to mitigate the risks.