Key Banking System Risks in the WAEMU: WAEMU
May 17, 2024
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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
Pages:
30
Volume:
2024
DOI:
Issue:
014
Series:
Selected Issues Paper No. 2024/014
Stock No:
SIPEA2024014
ISBN:
9798400275142
ISSN:
2958-7875
