Videoconference, May 21, 2021

The General Secretariat of the WAEMU Banking Commission (SCGB) held a videoconference meeting with the General Managers of Large Decentralized Financial Systems (SFD) on May 21, 2021 from 9:00 a.m. to 1:30 p.m. It brought together one hundred and ninety-one (191) participants.

The opening ceremony was chaired by Mr. Tiémoko Meyliet KONE, Governor of the BCEAO, President of the WAEMU Banking Commission. In his speech, the Governor stressed the importance that the Central Bank attaches to the microfinance sector. He particularly welcomed the significant progress made in terms of financial inclusion and financing of projects with a strong social impact.

He recalled that the regional financial inclusion strategy, currently being implemented under the aegis of the BCEAO, includes a mechanism for cleaning up the microfinance sector, which is facing certain vulnerabilities. In this context, the Central Bank has taken several initiatives aimed at the recovery of large MFIs in difficulty. In addition, facilities have been offered by the Regulator to mitigate the impact of the Covid-19 pandemic on MFIs.

Finally, the Governor stressed the particularity of the microfinance sector and announced the imminent opening of consultations with the profession on the evolution of the legal framework applicable to them. Led by Mr. Antoine TRAORE, Secretary General of the Banking Commission, discussions with the main managers of the MFIs referred to in Article 44 were mainly organized around two themes. The first theme focused on the situation of the microfinance sector, with a focus on the risks identified in the context of controls and the impact of the Covid-19 crisis on large MFIs. The second theme focused on raising awareness of the regulatory framework governing microfinance activities in WAEMU.

After the presentation of the themes, discussions allowed the Central Services of the Central Bank and the SGCB to provide details on the concerns expressed by the profession.

Closing the meeting, the Secretary General of the Banking Commission, on behalf of the Governor, Chairman of the Banking Commission, drew the attention of the sector's stakeholders to the need to take all measures to improve corporate governance and risk management within MFIs. This objective requires full compliance with the regulatory provisions governing the activities of these institutions. He indicated that the BCEAO and the Banking Commission will continue to monitor the impacts of the health crisis on the financial sector and, if necessary, could take additional measures to mitigate any possible shocks.

It should be noted that this meeting was preceded by a consultation between the General Secretariat of the Banking Commission and the main officials of the Ministerial Monitoring Structures (SMS) of the Decentralized Financial Systems of WAEMU, which took place on May 18, 2021. The aim of the said consultation was to strengthen coordination and the exchange of information within the framework of the shared supervision of large DFIs.