06 Dec 2018, Gergana Bencheva, EMIS Editor
Kenya, Tanzania’s banks exposed to sovereign risks – Moody’s
The reason for the existing risks is the African governments’ need to rely on domestic borrowing to ease their revenue pressures over their significant budget deficits, the agency explained. For example, the Kenyan banks’ profitability is expected to narrow as interest rate caps are due to keep credit growth at low levels and squeeze credit to small and medium-sized enterprises (SMEs).
Except for Kenya and Tanzania, Moody’s has included in the sovereign risk countries such as Angola, Egypt, Ghana, Mauritius, Morocco, Nigeria, South Africa and Tunisia, Africa Review noted.
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