West African Financial and Financial Union: Monetary Sector Evaluation Program-Technical Be aware on Monetary Security Web and Disaster Preparedness
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Abstract:
The institutional and authorized frameworks for monetary stability within the West African Financial and Financial Union (WAEMU) have seen important progress for the reason that earlier Monetary Sector Evaluation Program (FSAP) in 2008. 1 The institutional reform of the WAEMU and the Central Financial institution of West African States (BCEAO) in 2010 clarified the respective mandates and duties of the latter and the WAEMU Banking Fee (CBU), and it strengthened the CBU’s authorized autonomy and enforcement powers. A brand new banking regulation adopted in 2010 established an general framework for the operation and supervision of banking actions, which has been rendered extra proactive and danger primarily based with the gradual implementation of the Basel II/III mechanism initiated in 2016. A financial institution decision regime was launched in 2015 and the mandate of the deposit assure fund, created in 2014, was expanded to financial institution decision funding in 2018. A macroprudential coverage framework, together with for monitoring systemic monetary sector dangers, was developed across the BCEAO and the Monetary Stability Committee (CSF-UMOA) in 2010. This sequence of reforms has significantly enhanced the robustness of the monetary security internet by way of its 4 parts: the early intervention mechanism, the financial institution decision regime, the deposit insurance coverage system, and the emergency liquidity help (ELA) mechanism.
