financial strength

African banks are well placed to weather global SVB, Credit Suisse storm

By David Whitehouse

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Posted on March 23, 2023 09:58

 © A man displays Tunisian dinar banknotes after withdrawing cash from an ATM machine in Tunis, Tunisia, May 25, 2021. Picture taken May 25, 2021. REUTERS/Jihed Abidellaoui
A man displays Tunisian dinar banknotes after withdrawing cash from an ATM machine in Tunis, Tunisia, May 25, 2021. Picture taken May 25, 2021. REUTERS/Jihed Abidellaoui

African banks have the financial strength to withstand recent shocks to the global financial system, such as the collapse of Silicon Valley bank in the US and the need for Credit Suisse to be rescued by rival UBS.

Such shocks might be expected to trigger a loss of confidence in risky emerging and frontier markets. But Africa’s largest banks, along with those in emerging markets as a whole, are much stronger than they used to be.

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