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IMF Country Report No. 22/365
WEST AFRICAN ECONOMIC AND MONETARY UNION
FINANCIAL SECTOR ASSESSMENT PROGRAM
DETAILED ASSESSMENT REPORT ON THE BASEL CORE PRINCIPLES FOR EFFECTIVE BANKING SUPERVISION
December 2022
This detailed assessment report on the Basel Core Principles for Effective Banking Supervision was prepared by a staff team of the International Monetary Fund and World Bank in the context of a joint IMF-World Bank Financial Sector Assessment Program (FSAP). It is based on the information available at the time it was completed in December 2022.
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Title Page
WEST AFRICAN ECONOMIC MONETARY UNION (WAEMU)
FINANCIAL SECTOR ASSESSMENT PROGRAM
November 18, 2022
DETAILED ASSESSMENT REPORT
BASEL CORE PRINCIPLES FOR EFFECTIVE BANKING SUPERVISION
Prepared By:
Monetary and Capital Markets Department, IMF, and Finance, Competitiveness and Innovation Global Practice, World Bank
This report was prepared in the context of a joint IMF-World Bank Financial Sector Assessment Program (FSAP) mission conducted remotely during September 7-28, 2021, by Sophie Imani and Jean-Marie Weck, Consultants, IMF and World Bank, and overseen by the Monetary and Capital Markets Department, International Monetary Fund, and the Finance and Markets Global Practice, World Bank. The note contains the technical analysis and detailed information underpinning the FSAP assessment's findings and recommendations. Further information on the FSAP program can be found at http://www.imf.org/external/np/fsap/fssa.aspx.
Contents
Glossary
EXECUTIVE SUMMARY
INTRODUCTION
A. Information and Methodology Used in the Assessment
INSTITUTIONAL FRAMEWORK AND MARKET INFRASTRUCTURE
A. Institutional Framework for Banking Regulation and Supervision
B. Market Infrastructure
PRECONDITIONS FOR EFFECTIVE BANKING SUPERVISION
A. Sound, Sustainable, Macroeconomic Policies
B. A Well-Established Framework for the Formulation of Financial Stability Policies
C. Well-Developed Public Infrastructures
D. A Clear Framework for Crisis Management and Recovery and Resolution Mechanisms
E. An Appropriate Level of Systemic Protection (or Public Safety Net)
F. Effective Market Discipline
SUMMARY OF THE ASSESSMENT OF THE CORE PRINCIPLES
A. Powers and Responsibilities (Core Principles 1 to 7)
B. Functions of the Supervision Authorities (Core Principles 8 to 13)
C. Prudential Requirements and Regulations (Core Principles 14 to 29)
SUMMARY OF THE RESULTS OF THE DETAILED ASSESSMENT
RECOMMENDED ACTION PLAN AND RESPONSE FROM THE AUTHORITIES
DETAILED ASSESSMENT
TABLES
1. Structure of the Financial System
2. Distribution of Credit Institutions by Area Country
3. Banking Landscape
4. Systemic Institutions
5. Key Prudential Indicators for the Banking System
Glossary
| AC | Additional Criteria |
| AML-CFT | Anti-Money Laundering and Combating the Financing of Terrorism |
| BCA | Banking Chart of Accounts |
| BCBS | Basel Committee on Banking Supervision |
| BCEAO | Central Bank of West African States |
| C | Compliant |
| CAC | Auditors |
| CBU | Banking Commission of the West African Monetary Union |
| CED | Code of Ethics and Conduct |
| CEMAC | Central African Economic and Monetary Community |
| CIMA | Inter-African Conference of Insurance Markets |
| CIPRES | Inter-African Conference on Social Welfare |
| CP | Core Principle |
| CREPMF | Regional Public Savings and Financial Markets Board |
| CSF-WAMU | Financial Stability Committee of the West African Monetary Union |
| DCPEME | On-Site Supervision of Credit and Electronic Money Institutions Directorate |
| DERI | Studies and International Relations Directorate |
| DSF | Financial Stability Directorate |
| DSP | Off-Site Supervision Directorate |
| EC | Essential Criteria |
| EMI | Electronic Money Institutions |
| EP | Prudential Statement (Etats Prudentiels) |
| FGDR | Deposit Guarantee and Resolution Fund |
| FISEC | Register of Accounting Statements for Credit Institutions |
| FODEP | Prudential Statement Declaration Form |
| FSAP | Financial Sector Assessment Program |
| LC | Largely Compliant |
| LDS | Follow-Up Letter |
| NC | Non-Compliant |
| OHADA | Organization for the Harmonization of Business Law in Africa |
| ONECCA | National Association of Accounting Experts and Chartered Accountants |
| MNC | Materially Non-compliant |
| SFD | Decentralized Financial Systems |
| SGCB | Office of the Secretary General of the WAMU Banking Commission |
| SIB | Systemically Important Banks |
| SNEC | Rating System for Credit Institutions |
| WAEMU | West African Economic and Monetary Union |
| WAMU | West African Monetary Union |
