Financial Integration in the West African Economic and Monetary Union

IMF Working Papers, September 1, 2006

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Financial Integration in the West African Economic and Monetary Union

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Bibliographic details

• Authors: Amadou N Sy
• Published: September 1, 2006
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451864748.001

Summary and main findings

• The study assesses the degree of financial integration in the West African Economic and Monetary Union (WAEMU).
• Financial integration is well advanced in some aspects:
  • Common and foreign ownership of banks is very high.
  • Cross-border transactions are frequent in the government securities markets.
  • Common institutions help achieve a high degree of similarity of rules.
• Evidence of incomplete integration and scope for further convergence:
  • Persistent deviations from the law of one price.
  • Limited cross-border bank transactions.
  • Differences in treatment across jurisdictions.
• Policy implication: Policy measures could help achieve greater financial convergence.

Evidence and indicators cited

• Structure of the financial sector and institutional arrangements point to advanced integration in specific dimensions.
• Market behavior observations:
  • High incidence of common and foreign bank ownership.
  • Frequent cross-border transactions in government securities markets.
  • Residual frictions reflected in deviations from the law of one price and limited cross-border banking activity.

Policy recommendations and implications

• Implement policy measures aimed at reducing remaining frictions to achieve greater financial convergence across WAEMU members.
• Areas for policy focus implied by the study:
  • Address deviations from the law of one price.
  • Facilitate cross-border bank transactions.
  • Harmonize treatment where differences persist.

Publication and metadata

• By Amadou N Sy
• September 1, 2006
• Pages: 23
• Volume: 2006
• Issue: 214
• Series: Working Paper No. 2006/214
• DOI: https://doi.org/10.5089/9781451864748.001
• Stock No: WPIEA2006214
• ISBN: 9781451864748
• ISSN: 1018-5941
• Subject: Banking, Commercial banks, Financial integration, Interbank markets, Treasury bills and bonds
• Keywords: bank, banking system, capital market, treasury bill, WP
• Preview Citation (Chicago): Amadou N Sy. "Financial Integration in the West African Economic and Monetary Union", IMF Working Papers 2006, 214 (2006), accessed 9/8/2026, https://doi.org/10.5089/9781451864748.001

Content based on the IMF Working Paper "Financial Integration in the West African Economic and Monetary Union" (Working Paper No. 2006/214).

Content in this bundle

• 5. Sigma-Convergence
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  • 5. Sigma-Convergence (PDF)