West African Economic and Monetary Union: Financial Depth and Macrostability

October 22, 2013

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Patrick A. Imam, and Christina Kolerus. West African Economic and Monetary Union: Financial Depth and Macrostability, (USA: International Monetary Fund, 2013) accessed September 18, 2024

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The financial system in the WAEMU remains largely bank-based. The banking sector comprises 106 banks and 13 financial institutions, which together hold more than 90 percent of the financial system’s assets (about 54 percent of GDP at end-2011). Five banks account for 50 percent of banking assets. The ownership structure of the sector is changing fast, with the rapid rise of foreign-owned (pan-African) banks. This contributes to higher competition but also rising heterogeneity in the banking system, with large and profitable cross-country groups competing with often weaker country-based (and sometime government-owned) banks. Nonbank financial institutions are developing quickly, notably insurance companies, but remain overall small. This paper presents a detailed analysis of the banking system.

Subject: Bank credit, Banking, Commercial banks, Financial crises, Financial institutions, Financial markets, Financial sector development, Financial sector policy and analysis, Financial services, Stress testing

Keywords: Commercial banks, Debt market, DP, DPPP, East Africa, Financial crisis, Financial sector development, Interbank market, Interest rate, Stress testing, Sub-Saharan Africa, WAEMU authorities, WAEMU bank, WAEMU country, WAEMU interbank market, WAEMU member states, West Africa

Publication Details

Pages:

45
Volume:

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DOI:

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Issue:

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Series:

Departmental Paper No. 2013/005
Stock No:

WFEMUEA
ISBN:

9781484348222
ISSN:

2616-5333

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