Regulatory Alerts2011-03-18
Instruction No. 002/03/2011 on the Procedures for Establishing Mandatory Reserves with the Central Bank of West African States (BCEAO)
The Central Bank of West African States (BCEAO) issued Instruction No. 002/03/2011 to standardize the procedures, calculation methods, and control mechanisms for mandatory reserves that credit institutions must hold. The instruction defines the accounting basis for determining reserve liabilities, establishes monthly and quarterly establishment periods, and mandates precise declaration forms to be submitted within thirty days. It further outlines the arithmetic calculation of average balances, specifies penalty rates for insufficient reserves, and sets forth notification procedures and enforcement timelines to ensure regulatory compliance across the West African Monetary Union.
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