Angola, Kenya and Tanzania are the three sub-Saharan African countries that will have a stronger consolidation in banking sector in the next years
"The wave of mergers and acquisitions that are sweeping sub-Saharan Africa's banking markets is positive from a credit standpoint," reads in a Moody's analysis of this sector.
According to the credit rating agency's report sent to clients and which Lusa had access, "in Angola, the regulator is carrying out an analysis of the quality of the banks' assets, which should be completed by the end of the year, and should lead to a consolidation movement within the banking system over the next two years".
In the document, Moody's says that, globally in the region, "the number of small and inefficient banks is falling, while the largest banks continue to grow steadily, raising banks with stronger credit profiles."
Despite predicting "stagnant" growth in countries like Angola, Nigeria and South Africa, Moody's says it is these circumstances that push banks "to seek synergies and scale economies through mergers and acquisitions."
This consolidation, Moody's argues, "enhances the stability of the banking system" because "the consolidation increases economies of scale, improves stability due to product and geographic diversification, and makes regulation more efficient as it reduces the monitoring weight of a large number of small banks. "