Fitch flags Senegalese banks’ growing exposure to government securities

Senegalese banks are increasingly exposed to the country’s government securities, according to information reported by Leral. Fitch Ratings has warned of the contagion risk that this growing concentration of assets linked to government debt could pose.

Rising exposure

Banking institutions hold an increasing share of Senegalese government securities. This development strengthens the link between the state of public debt and that of the banking sector.

Contagion risk raised

Fitch Ratings considers this exposure to be a contagion risk factor. However, the available information does not specify either the level of banks’ holdings or the scenarios considered by the agency.