Economic and Financial Review


P.J.. Obaseki


Central Bank of Nigeria


Cross-border banking, Financial integration, Financial liberation, Underdevelopment


The paper sets out to review developments in cross-border banking in the West African sub-region and implications of the growth of cross-border banking institutions for financial integration in West Africa. This paper noted that initial efforts at cross-border banking in the sub-region were led by Ecobank Transnational Incorporated with the active support of the Economic Community of |West African States (ECOWAS), which acquired substantial shares in the bank, Regional approach to cross-border banking and financial integration in the sub-region has complimented the market approach facilitated by private enterprise. Regional efforts have been intensified but problems remain with the numerous barriers to the free movement of goods, services and capital. While cross-border banking can facilitate financial integration, there are a number of implications which require policy remedial actions and safeguards for the benefits of cross-border banking to be enjoyed by both home and host economies. The safeguards are in the areas of cooperation between home and host regulators and supervisors to ensure that cross-border banks are comprehensively supervised as well as ensure that risks are identified and analyzed wherever they occurred. The exchange of information between regulators and application of risk-based consolidated supervision is necessary to contain systemic risks. The paper concluded that the issue is not to halt financial globalization but, to put in place, mechanisms that will detect banking crises before they occur; and when they do occur, to apply remedial actions to contain and reverse the problems.





Recommended Citation

Obaseki, P.J. (2009). Implications of cross-border banking for financial integration in the West African sub-region. Economic and Financial Review. 47(4), 187-215.



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