​This paper discusses the challenges that Sub-Saharan African countries face in implementing financial regulation. It looks in particular at the issue of capacity (human, technical) for effective regulation and supervision. It argues that the benchmark for capacity assessment in the region is being set too high and inappropriately, and that Sub-Saharan African countries can settle on simpler rules in line with their specific needs. From this perspective, the analysis, based on a number of sources, is that Sub-Saharan Africa is making significant progress in acquiring capacity and resources, as well as gradually putting in place rules and tools for effective regulation and supervision, although challenges remain, for example regarding what capital adequacy framework to adopt and how to regulate foreign banks.

Ricardo Gottschalk