The WAMU Banking Commission may decide to place a reporting institution under provisional administration in the following cases :
- at the request of the executive management, when they consider that they are no longer in a position to carry out their duties properly,
- when the Banking Commission determines that the institution can no longer be managed under normal conditions, or
- when it has ordered the suspension or compulsory resignation of managers responsible for an infringement of banking regulations.
The Banking Commission shall notify its decision to the Minister of Finance of the State concerned, who shall appoint a provisional administrator with all the powers necessary for the administration, management and stewardship of the regulated institution concerned.
The provisional administrator shall be appointed within a maximum period of seven calendar days from the date on which the Minister of Finance receives the said decision, from a list drawn up for that purpose by the Banking Commission.
The decision of the WAMU Banking Commission to place a bank under provisional administration shall stipulate the terms of reference of the temporary administrator’s mandate, including the expected timeframe and duties.
Procedures for implementing provisional administration are specified in Circular No. 006-2011/CB/C of January 4, 2011, on the provisional administration of credit institutions and decentralized financial systems in WAMU.
