Coronavirus Pandemic: A New Path To Rethinking Macroprudential Policy In Africa

Tunisia - 21 October 2024

Trade topics: Africa

About two years ago, the world was hit by a major unexpected shock: the COVID-19 pandemic. While this health and economic crisis has had, and continues to have, a severe impact on European citizens and businesses, the euro area banking sector has so far weathered the crisis well. Rather than being part of the problem, it has been part of the solution. The central banks in many African countries have managed to change their monetary and macroprudential tools. The banking sector also has managed to support the economy through continued lending, including to the sectors most affected by the lockdown measures.
Macroprudential policy actions focus on averting the emergence of financial imbalances and building resilience in the financial system in good times, with the aim of supporting financial intermediation and especially lending to the real economy in bad times.

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