Expdonaloaded News; West African capital markets’ integration key to economic growth – Ghana SEC DG

The Director General, the Securities and Exchange Commis­sion (SEC), Ghana, Dr. Adu Anane Antwi, has said that West African capital market integration was strategic to economic growth of the re­gion.
Antwi who disclosed this in Lagos Tuesday, during the 11th annual Pearl Awards Public Lecture for capital market de­velopment stated that to sustain the current level of economic growth and encourage both do­mestic and foreign investment in the sub-region, the region needs to expand, develop and modernise its capital markets.

“Evidence from empiri­cal economic studies suggests that deeper, broader and better functioning capital markets can stimulate economic growth,” he said.
He explained that well-de­veloped capital markets have played critical roles in the eco­nomic development of many countries as the capital market make funds available for busi­nesses and governments under­taking long-term projects at a competitive cost of capital.
“Typically, banks provide short term financing, which cannot be used to finance long term projects. Most develop­ment projects are long term in nature and need long term funding to be sustainable. Well-developed capital markets have provided equity capital and infrastructure development capital that have strong socio-economic benefits in job and wealth creation resulting in the growth and development of the economies of these countries.”post by expdonaloaded.blogspot.com..The Ghana SEC DG defined capital market integration to be a process by which capital markets are integrated with one another rather than segmented, leading to a convergence of market risk and price.He said that if markets are completely integrated, as­sets possessing the same risk characteristics will have the same price even if they are traded on different markets. “In completely integrated capital markets, investors face com­mon and country-specific or  idiosyncratic risk, but price (identical in all markets) only common risk factors, because country-specific risk is fully di­versifiable. When markets are partially integrated, investors face both common and idio­syncratic risks and price them both.”
However, Antwi stated that integration of capital markets are not without challenges even in the much advanced regions of the world. The integration of the West African capital markets is fraught with many challenges, including converg­ing national objectives with regional aspirations, obtaining political support and buy-in by market operators and other stakeholders.
He said, “from a policymak­ing perspective, a key issue confronting regional financial cooperation and integration is how best to shape national and regional policies in a way that allows the region’s individual economies to maximise the potential gains from financial integration, while at the same time minimising exposure to any risks associated with it.”

Click photo to download; but you lied to me by Expdona aka finish gravity

Expdonaloaded blog;Click the photo to download aboki wey d suya by Expdona aka finish gravity