Regulatory Alerts2016-11-15
Instruction No. 026-11-2016 on Accounting and Valuation of Non-Performing Commitments
The Governor of the Central Bank of West African States (BCEAO) issued Instruction No. 026-11-2016 to standardize the accounting and valuation of non-performing commitments for UMOA credit institutions and financial companies. The directive mandates precise classification of loans into healthy, restructured, doubtful, disputed, and irrecoverable categories based on payment delays, concessions, and risk indicators, while prescribing specific depreciation rates and optional provisions for state-backed versus private exposures. It establishes clear reclassification timelines, discount amortization rules, and off-balance sheet risk assessment criteria, taking full effect on 1 January 2018.
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