ABSTRACT
In the 1980s in sub-Saharan Africa, many governments initiated major restructuring of their financial systems as part of structural adjustment programmes. In most programmes, the initial emphasis was on liberalization measures, such as the removal of controls on interest rates and credit allocation. Subsequent components of these reforms have included the restructuring of bank portfolios and the enhancement of financial sector competition. Using loans from donor agencies, several African countries have initiated special Financial Sector Adjustment Projects (FINSAPs) to support reform measures. Many FINSAPs have focused on improving the footing of distressed formal institutions through the restructuring and refinancing of balance sheets. These operations increasingly emphasize the necessity for enhanced financial supervision and an improved regulatory environment.
