West African Economic and Monetary Union: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Preparedness
IMF Staff Country Reports, August 25, 2022
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Bibliographic details
- Published: August 25, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400218514.002
Key findings on institutional and legal framework progress
- The institutional and legal frameworks for financial stability in the West African Economic and Monetary Union (WAEMU) have seen significant progress since the previous Financial Sector Assessment Program (FSAP) in 2008.
- Institutional reform of the WAEMU and the Central Bank of West African States (BCEAO) in 2010:
- Clarified the respective mandates and responsibilities of the BCEAO and the WAEMU Banking Commission (CBU).
- Strengthened the CBU’s legal autonomy and enforcement powers.
- A new banking law adopted in 2010 established an overall framework for the operation and supervision of banking activities.
- This framework has been rendered more proactive and risk based with the gradual implementation of the Basel II/III mechanism initiated in 2016.
- A bank resolution regime was introduced in 2015.
- The deposit guarantee fund was created in 2014 and its mandate was expanded to bank resolution funding in 2018.
- A macroprudential policy framework, including monitoring of systemic financial sector risks, was developed around the BCEAO and the Financial Stability Committee (CSF-UMOA) in 2010.
- These reforms have greatly enhanced the robustness of the financial safety net via its four components:
- the early intervention mechanism,
- the bank resolution regime,
- the deposit insurance system,
- and the emergency liquidity assistance (ELA) mechanism.
Thematic emphasis and scope
- Subject areas covered: Bank resolution, Bank resolution framework, Credit, Crisis management, Financial crises, Financial safety nets, International organization, Monetary policy, Money.
- Keywords highlighted: Bancaire de l'UMOA, Bank resolution, Bank resolution framework, BCEAO governor, CBU decision, CBU staff, Credit, Crisis management, Financial safety nets, IMF-World Bank Financial Sector Assessment Program, WAEMU Banking Commission, West Africa.
Publication and document identifiers
- Publication title: West African Economic and Monetary Union: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Preparedness
- Publication date: August 25, 2022
- Series: Country Report No. 2022/281
- Issue: 281
- Volume: 2022
- Pages: 43
- DOI: https://doi.org/10.5089/9798400218514.002
- ISBN: 9798400218514
- ISSN: 1934-7685
- Stock No: 1WAUEA2022006
International Monetary Fund. African Dept. "West African Economic and Monetary Union: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Preparedness", IMF Staff Country Reports 2022, 281 (2022).
Content in this bundle
- 1wauea2022006 - Executive Summary