The limited capacity for domestic banks to meet the new domestic credit demands suggests a threat to maximum growth of Africa’s trade. Accordingly, this suggests a need for MDBs to provide lines credits to domestic financial institutions, to increase their capacity to deal with this new development. Capital inflows The global crisis is reversing the recent upward trend in capital inflows to Africa.
Many of you may recall that this mega-regulator concept is consistent with the 2004 White Paper on Reform of the Financial System in Trinidad and Tobago which envisaged “a Single Regulatory Authority with the necessary powers and authority for the integrated regulation of the sector” in Trinidad and Tobago.