2023-12-26 15:56:00
(Ecofin Agency) – After raising the minimum capital of banks in the West African Monetary Union in November 2007, the Council of Ministers recently approved a new capital threshold for banks. This measure aims to strengthen the resilience of the banking sector.
The minimum share capital of banks in the UMOA (West African Monetary Union) zone will increase from 10 to 20 billion CFA francs (16.8 to 33.6 million dollars). This decision was taken by the WAMU Council of Ministers on Thursday December 21, 2023, during its 4th ordinary session of the year.
This measure aims to “strengthen the resilience of the banking sector and respond to the growing financing needs faced by the countries of the Union”.
For the moment, the deadline set for active banks to comply with this new threshold has not been specified, as has the date of entry into force of this decision. Note that the minimum share capital of WAMU banks has been raised several times in recent years.
The last increase before that announced on December 21 dates from November 2007. The WAMU Council of Ministers had decided to increase the minimum share capital of banks from 5 to 10 billion CFA francs, with the aim of promoting a healthy and solid.
Let us specify that the UMOA monetary zone had a total of 135 banks at the end of March 2023. Cote d’Ivoire, Senegal and Burkina Faso had the largest number of banks in the region with 29, 28 and 16 banks respectively.
In this area, 7 banks have been identified as systemically important banking establishments (EBIS), for the year 2023. They have the particularity that their failure might jeopardize the financial system and economic activity within of WAMU.
Chamberlain Moko
1703608364
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