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Moody's changes African banks’ outlook to stable

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The rating agency said that stricter regulation and improved supervision will also help address legacy governance issues and support banks' financial stability.

Tuesday 04, December 2018 BY KUDAKWASHE MUZORIWA

Moody's has changed its outlook for African banks to stable from negative reflecting the prospects of an acceleration in economic growth and stricter regulation.

In a report, Moody's forecasts economic growth to average 3.8 per cent in 2019, compared with an estimated 3.1 per cent this year and 2.7 per cent in 2017.

Growth will be driven by strong domestic demand and relatively stable commodity prices, and be particularly robust in East Africa, Egypt as well as the West African Economic and Monetary Union (WAEMU), added Moody’s.

Constantinos Kypreos, Moody's Senior Vice President, said, “Accelerating economic growth in Africa, though still below potential will support credit growth, while stricter regulation and better supervision will support financial stability.”

TAGS : Moody's, African Banks , Economic growth

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