2010-12-06
Issued by the Monetary Policy Committee of the Central Bank of West African States (BCEAO), Decision No. 397/12/2010 establishes the comprehensive rules, instruments, and procedures for implementing the union's monetary and credit policy. It defines eligible participants, intervention windows, and open market operations including main liquidity injections, long-term refinancing, and fine-tuning auctions, while detailing the marginal lending and intra-day advance facilities. The decision further regulates BCEAO interest rates, deposit remuneration, and mandates pricing transparency and standardized debit/credit conditions for all credit institutions and decentralized financial systems within the UEMOA.
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DECISION NO. 397/12/2010 ON THE RULES, INSTRUMENTS AND PROCEDURES FOR IMPLEMENTING THE MONETARY AND CREDIT POLICY OF THE CENTRAL BANK OF WEST AFRICAN STATES
THE MONETARY POLICY COMMITTEE,
Having regard to the Statutes of the Central Bank of West African States hereinafter referred to as "BCEAO" or "Central Bank", annexed to the Treaty of the West African Economic and Monetary Union (UEMOA), dated January 20, 2007, particularly Articles 9, 16 to 20, 62, 66, 75 and 78, Having regard to the Law on banking regulation,
D E C I D E S
Article 1: Subject Matter
This Decision sets out the rules, instruments and procedures for conducting the monetary and credit policy of the Central Bank of West African States.
PRELIMINARY TITLE: DEFINITIONS
Article 2: Terminology
For the purposes of this Decision, the following terms shall mean:
Principal Agency: The Principal Agency of the BCEAO in the relevant UEMOA Member State;
Bank: Credit institution referred to in Article 3 of the Law on banking regulation;
Credit Conditions: Schedule of remuneration for deposits and savings of individuals and businesses, as well as public deposits and similar deposits;
Debit Conditions: Interest, fees, commissions and remuneration of any kind, applied for banking and financial services offered to customers;
Central Depository/Settlement Bank: Central Depository / Settlement Bank approved by the Regional Council for Public Savings and Financial Markets;
Bank Deposits: Sums received from customers by a bank, with or without interest stipulation, and the bank's right to dispose of them for its business needs, subject to the obligation to provide the depositor with a cash service. Deposits may be demand deposits, freely disposable by the owner at any time, or term deposits, which the client cannot claim before a certain period;
Private Deposits: Customer deposits other than public and similar deposits with credit institutions, decentralized financial systems, and the financial services of the Administration or the Postal Office;
Public and Similar Deposits: Deposits made by the public treasuries of UEMOA Member States, the financial services of the Administration or the Postal Office, and other funds deposited by UEMOA Member States, local government deposits, other public and semi-public bodies, as well as private organization deposits with credit institutions resulting from a regulatory obligation;
Contractual Savings: A savings-credit system consisting of a savings phase over an agreed period between a credit institution, a decentralized financial system, and a natural or legal person, which entitles the latter to a preferential rate loan upon completion of this period;
Credit Institution: Legal person referred to in Article 2 of the Law on banking regulation, which habitually carries out banking operations as a profession and is approved as a bank or banking financial institution;
Banking Financial Institution: Credit institution referred to in Article 4 of the Law on banking regulation;
Venture Capital Financial Institution and Equity Investment Financial Institution: Fixed-capital companies referred to in Article 10 of the Law on banking regulation which habitually contribute, using own or similar resources, to strengthening the equity and similar funds of other companies.
CFA Franc or FCFA: Franc of the African Financial Community, the legal monetary unit of UEMOA Member States;
Approved Intermediary: Any credit institution established in the territory of a UEMOA Member State and having received the status of approved intermediary, by approval of the Minister in charge of Finance;
Capital Market: Market where economic agents with a financing capacity lend to those with a financing need;
Money Market: Market where authorized financial institutions