The study considers the context of six areas: (i) size and growth of the financial sector relative to lower-income countries and middle-income countries; (ii) implications of a mixture of local banks (some of which have spread to neighbouring countries), foreign banks and development finance institutions; (iii) evolution and macroeconomic implications of financial innovations and  inclusion; (iv) cost and access to credit, especially to small and medium enterprises; (e) prudential regulations; and (f) management of capital flows in the context of large current account deficits, mainly financed by short-term net capital inflows such that their easy reversibility could potentially generate a currency crisis.

Francis M. Mwega