BankofSouth Sudan’s Governance,Nature, Growth, and Impact ofBankingSector on the Economy
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 1
Abstract
This article studies Bank of South Sudan’s governance structure, and its conformity to principles of independence, transparency, and accountability. It evaluates nature and growth of banking sector in South Sudan and impacts on the economy. This paper adopts a case study, evidentiary documentary evidence as corroborated by personal eye-witness accounts of the author, and uses cross-comparative analyses with Kenya and Uganda as baselines. This study finds that Bank of South Sudan’s governance structure does not conform to required best governance practices of a central bank. The banking sector is extremely under-capitalized; the loan-deposit ratio is only about 15%, while only 3% South Sudanese access financial services as at the end of December 2013. The governance structure and banking sector contributed to the deterioration of South Sudan’s macroeconomic fundamentals. This paper recommends that far-reaching reforms are required to enable Bank of South Sudan’s governance structure conforms to the best practices. This requires a review of the Bank of South Sudan Act, 2011 and Banking Act, 2012. There is a need to recapitalize commercial banks to meet the international capitalization standards. Policies to enhance financial access should be instituted. War should be stopped. This will give room for efforts to stabilize South Sudan’s macroeconomic fundamentals. A peer-to-peer review mechanism within the East African Countries' central banks can help speed-up regulatory convergence and practices to minimize possible banking sector exposures.
Authors and Affiliations
Gabriel Garang Atem
Keywords
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- EP ID EP414456
- DOI 10.9790/5933-0901018295.
- Views 229
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