2024-08-13 02:42:47
The banking sector in the UEMOA zone is strengthening its flexibility and solidity. This is evidenced by the main activity indicators recording a clear improvement in 2023.
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The banking network in the UEMOA zone continues to expand, with resources mobilized to the tune of 53,563.1 billion CFA francs in 2023. Thus, consolidated resources have an annual increase of 4.8% compared to the year 2022, according to the Commission Banking of the West African Monetary Union (Cb-Umoa).
The Banking Commission’s 2023 Annual Report states that these resources are made up of 84.1% from customer deposits and loans, an annual increase of 3%. Net equity and other resources of the sector represent 11.7% and 4.2% of overall resources respectively, with increases of 14.8% and 18.8% compared to 2022.
The balance sheet total, credits and deposits of network customers showed respective increases of 2.9%, 7.8% and 3.0% in 2023 in the Union. Net banking income (NPB) was 3,354.0 billion CFA francs, an increase of 10.0%, while gross operating income was 1,617.6 billion CFA francs, an increase of 15.7% compared to 2022.
This has resulted in a temporary positive net result of 1,153.3 billion, an annual increase of 18.9%, which attests to the profitability of the banking activity in the area. The net operating ratio shows an improvement year on year, from 59.5% to 56.3%, for the Commission.
Increased liquidity
The overall average solvency ratio declared by credit institutions was 14.1% compared to 13.3% in 2022, much higher than the regulatory minimum of 11.5%, Cb-Umoa reports.
In total, 28 national banking establishments of systemic importance (Ebis) are identified in 2023. They represent, according to the report, a total balance sheet of 26,342.9 billion CFA francs, which represents 40.0% of all banking assets of the Union. The gross rate of deterioration of their portfolio improved slightly (-0.8 percentage points), standing at 8.0% compared to 8.8% in 2022. The net rate was 2.5%, compared to 2.8% a year earlier. The overall average solvency ratio for national Ebis stands at 13.5% compared to 12.8% in 2022.
As for the 6 regional Ebis, they show a total balance sheet of 39,681.8 billion CFA francs, which represents 81.7% of all the assets of the financial companies of the Union compared to 80.0% in 2022. They were the number 19, and recorded the second one of them a total balance sheet of 49,623.3 billion, down 2.3% during the year. The overall average solvency ratio of financial companies in the Union is 14.2%, compared to 12.2% in 2022.
At the end of 2023, the banking system had 2,747 branches, offices and points of sale, an increase of 58 units, which represents an increase of 2.2% compared to 2022. The number of customer accounts and the number of personnel follow the same trend. , with respective increases of 6.6% and 9.0%.
Boxed
A strengthened legal framework
The minimum share capital of Union banks is increased from 10 to 20 billion CFA francs as of 1 January 2024. Institutions already approved must comply by the end of 2026 at the latest, in accordance with the decision of the Umoa Council of Ministers as of 21 December , 2023.
In addition, the Umoa Council of Ministers adopted a new convention regulating the Banking Commission and regulating Annex, which strengthens the powers of resolution of the Banking Commission and expands the missions of the governing body to include the issues related to it. particularly in relation to financial stability and enhanced depositor protection. “The implementation of this new legal framework will, on the one hand, improve the quality of governance and risk management of financial institutions and, on the other hand, strengthen the region’s ability to respond effectively to banking and financial crises that may be there,” hopes Jean. -Claude Kassi Brou, governor of the West African State Central Bank (Bceao), president of the Umoa Banking Commission.
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