Regulatory Alerts2024-02-01
BCEAO Temporary Exclusion of UMOA Public Securities from Prudential Loan Norms for Shareholders, Executives, Staff and Auditors
BCEAO issued Opinion No. 002-04-2023, authorizing credit institutions to temporarily exclude UMOA member state public securities from their portfolios when calculating the prudential loan limit for major shareholders, executives, staff, and auditors. This exclusion takes immediate effect upon the April 11, 2023 signature date and binds all notified credit institutions. The regulatory change permits financial entities to lower their reported loan exposures to these categories without disposing of the underlying assets, thereby increasing portfolio flexibility under existing prudential frameworks.
BCEAO CENTRAL BANK OF THE STATES OF WEST AFRICA The Governor OPINION NO. 002-04-2023 REGARDING THE TEMPORARY EXCLUSION OF PUBLIC SECURITIES ISSUED BY UMOA MEMBER STATES FROM THE CALCULATION OF THE PRUDENTIAL STANDARD REGARDING LOANS TO MAJOR SHAREHOLDERS, EXECUTIVES, STAFF AND AUDITORS Credit institutions are authorized to temporarily exclude the public securities they hold in their portfolios from the scope of application of the prudential standard regarding loans to major shareholders, executives, staff and auditors. This temporary exclusion takes effect as of the date of signature of this Opinion. This Opinion is notified to credit institutions and published wherever necessary. Done in Dakar, on April 11, 2023 Avenue Abdoulaye FADIGA BP 3108 - Dakar, Senegal I Tel. (221) 33 839 05 00 / Fax. (221) 33 823 93 35 courrier.bceao@bceao.int - www.bceao.int Jean-Claude Kassi BROU