BCEAO Sets Minimum Social Capital for Banks and Credit Financial Institutions in UMOA

[Logo: BCEAO - CENTRAL BANK OF THE STATES OF WEST AFRICA]

The Governor

NOTICE NO. 001-01-2024 SETTING THE MINIMUM SOCIAL CAPITAL FOR BANKS AND CREDIT FINANCIAL INSTITUTIONS IN THE MEMBER STATES OF THE WEST AFRICAN MONETARY UNION (UMOA)

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During its session held on December 21, 2023, in Cotonou, the UMOA Council of Ministers decided to raise the minimum social capital for banks from 10 to 20 billion and to maintain that of credit financial institutions at 3 billion.

This measure aims to foster the emergence of strong and competitive banks, with a view to strengthening the resilience of the banking sector and meeting the growing financing needs of the Union's economies.

Banks approved before January 1, 2024, the effective date of the Decision, have a period of three (3) years to comply with the new threshold of 20 billion.

Any bank whose minimum social capital does not meet the 20 billion threshold as of January 1, 2024, must submit a compliance plan to the Minister in charge of finance of its country of establishment, to the UMOA Banking Commission, and to the Central Bank of the States of West Africa by July 1, 2024 at the latest.

The compliance plan must be accompanied by an implementation schedule indicating the measures to be implemented by the bank to comply with the provisions of this Notice as well as all capital social-related standards provided for by the Law on banking regulation in the UMOA.

The new threshold applies to any new application for approval as a bank.

This Notice is notified to banks, credit financial institutions, and financial companies. It shall be published wherever necessary.

Done in Dakar, on January 5, 2024

THE CENTRAL BANK OF THE STATES OF WEST AFRICA

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