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AEC 2010 - The Cross Border Expansion of African LFCIs : Implications for Regional Financial Stability and Regulatory Reform
The global financial crisis has reignited interest in Large and Conglomerate Financial Institutions (LCFIs). However, attention has focused on industrial countries while the cross border expansion of African LCFIs 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 the African LCFIs, analyzes the stability risks that the groups pose, and identifies regulatory reforms to mitigate the risks with a view to ensure that the expansion contributes to improved financial intermediation and sustainable economic growth.