## Financial Integration in the West African Economic and Monetary Union

_IMF Working Papers, September 1, 2006_

## Source details

**Canonical URL:** [Financial Integration in the West African Economic and Monetary Union](https://www.imf.org/en/publications/wp/issues/2016/12/31/financial-integration-in-the-west-african-economic-and-monetary-union-19815)

## Other formats

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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

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### 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).*

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## Content in this bundle

- **5. Sigma-Convergence**
  - [5. Sigma-Convergence (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2006/_wp06214.pdf.md){rel="alternate" type="text/markdown"}
  - [5. Sigma-Convergence (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2006/_wp06214.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/financial-integration-in-the-west-african-economic-and-monetary-union-19815_