Abstract

In the last few years, the world has experienced three episodes of global financial stress. The most significant took place after the collapse of the U.S. investment bank Lehman Brothers in late 2008. The other episodes, in mid-2010 and late 2011, have involved the deterioration of European public finances and financial conditions. The theme that runs through these three episodes is a generalized increase in global risk aversion (Figure 2.1). This chapter explores the channels through which global financial stress affects sub-Saharan African banking systems,1 reviewing the effects of the 2008–09 financial turmoil and the recent European crisis.

Sustaining Growth amid Global Uncertainty
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