Selected Issues Papers

Key Banking System Risks in the WAEMU: WAEMU

By Knarik Ayvazyan

May 17, 2024

Download PDF Order a Print Copy

Preview Citation

Format: Chicago

Knarik Ayvazyan. Key Banking System Risks in the WAEMU: WAEMU, (USA: International Monetary Fund, 2024) accessed October 9, 2024

Summary

The gradual alignment of prudential regulations on Basel II/III standards since 2018, as well as improvements in banking supervision and macroprudential surveillance, have contributed to the WAEMU’s banking system’s resilience to recent global and regional shocks. However, while cyclical vulnerabilities have been contained, bank credit portfolios remain highly concentrated, and their exposure to sovereign risks has grown substantially in recent years, together with liquidity risks. Further reforms building on those recently implemented in line with recommendations from the 2022 Financial Sector Assessment Program (FSAP), including to enhance macroprudential policy’s effectiveness and banking supervision frameworks, will help address such vulnerabilities.

Subject: Commercial banks, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Government securities, International organization, Macroprudential policy, Market risk, Monetary policy, Securities

Keywords: Bank credit portfolio, Banking supervision framework, Banking System risk, Banking system's resilience, Banks, Commercial banks, Credit gap, Financial stability, Global, Government securities, Macroprudential policy, Market risk, Risk, Risks in the WAEMU, Securities, Stress test, Sub-Saharan Africa, WAEMU

Publication Details

  • Pages:

    30

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Selected Issues Paper No. 2024/014

  • Stock No:

    SIPEA2024014

  • ISBN:

    9798400275142

  • ISSN:

    2958-7875