Critically, the terms of the curatorship as announced by the Governor on 10 August are designed to ensure that the bank remains open for business, preventing an abrupt halt to credit extension to the important segment of the market (low income earners) which African Bank serves.
In my view, further standardisation of the rating systems of local credit rating agencies at the regional level would be a crucial step in facilitating cross-border comparisons and using the advantages that local credit rating agencies have in terms of reducing the problem of asymmetric information.