Title:
Prudential Measures and Monetary Policy Impact Agricultural Loans in the Great Lakes Region of Africa

Authors:
François-Romain BAHATI SEBASORE, Clément BULA BASUAYI, Isaie KADHAFI, Ildephonse Sindayigaya, Burundi

Abstract:

This research sheds light on the intricate relationship between monetary policies, prudential measures, and agricultural portfolios in the low-income countries of the Economic Community of the Great Lakes Region of Africa (CEPGL). Through a meticulous methodology blending quantitative analysis and econometric models, it discerns various factors influencing agricultural loans. The study reveals a negative correlation between agricultural credit and certain variables like monetary policy, total bank assets, and political stability. Conversely, indicators such as economic stability and the presence of commercial bank branches exhibit a positive impact on agricultural lending. Interestingly, prudential measures appear to have no discernible effect on agricultural loans, which contrasts with the negative influence of monetary policy. The findings emphasize the necessity for tailored monetary policies geared towards facilitating agricultural sector financing in the CEPGL region. Furthermore, they underscore the pivotal role of governments in instituting measures to expedite land inclusion, thereby enhancing access to agricultural credit. By integrating diverse variables such as political instability, financial inclusion, insurance coverage, institutional quality, and business environment, this study pioneers a comprehensive approach to evaluating the efficacy of monetary policy and regulatory measures for agricultural portfolios in the Great Lakes Region of Africa.

DOI: https://doi.org/10.51505/IJEBMR.2025.9417