The WAMU resolution mechanism applies to systemically important banking institutions (SIBs). However, the regime may be extended to any other credit institution, financial company, decentralized financial system, market infrastructure or any entity subject to the control of the WAMU Banking Commission on the territory of a Member State, whose failure may have a significant impact on the financial stability or on the economy of one or more Member States of the Union.

Are considered as SIBs, "establishments whose failure, because of their size, their complexity, the volume of their activities or their systemic interconnection, can jeopardize the financial system and the economic activity of the WAMU".

The WAMU Banking Commission establishes and periodically publishes the list of systemically important banking institutions at the national and regional levels, based on a methodology disseminated to the banking profession.

In accordance with the provisions in force, the BCEAO has developed and disseminated to reporting institutions, by Notice, a methodology for identifying SIBs and determining the capital surcharge. Following this Opinion, the WAMU Banking Commission adopted and published the first list of SIBs during its session of March 27, 2020 as well as the systemic buffer applicable to regional SIBs.

As a reminder, SIBs, in particular national ones, are subject to the requirements common to all banking institutions but also to specific and reinforced obligations, linked to their systemic nature.

By virtue of the principle of proportionality, Article 4 of Circular No. 01-2017/CB/C relating to the governance of credit institutions and financial companies of WAMU thus states that regional and national SIBs must have a governance framework adapted to their weight and to the consequences that their possible failure could have on the stability of the financial system of the WAMU or in their State of establishment.

In this respect, SIBs have more stringent obligations in terms of governance bodies or functions.

With regard to the bodies, in particular the specialized committees, it appears from article 18 of the aforementioned Circular that "the deliberating body must have at least :

• an audit committee, a risk committee, a remuneration committee and a nomination committee, with regard to regional systemically important banking institutions ;
• an audit committee, a risk committee and a remuneration committee, with regard to national systemically important banking institutions.

With regard to functions, Article 28 of the aforementioned text provides that "regional and national systemically important banking institutions must have at least internal audit, risk management and compliance functions".

These specific requirements also concern compliance with prudential standards. Indeed, it follows from paragraph 101 of the Prudential Framework that regional SIBs must constitute a capital surcharge. This systemic cushion aims to strengthen their solidity, given the shocks that their default or financial difficulties could cause on the WAMU financial system.

In accordance with paragraph 102 of this Mechanism, the WAMU Banking Commission published the capital surcharge applicable to regional SIBs by Decision No. 023-03-2020/CB/C of March 27, 2020. Under the terms of Article first of the said decision, the institutions concerned constitute a systemic buffer composed essentially of elements of own funds in the form of ordinary or similar shares.

This cushion was set at 0.40% in 2021, 0.70% in 2022 and 1% from 2023.

It should also be noted that, in accordance with paragraph 469 of the Prudential Framework, EBISs may be subject, by Decision of the WAMU Banking Commission, to the obligation to respect a leverage ratio higher than the minimum standard of 3 %. In other words, the Supervisor may require more Tier 1 capital to cover the total on-balance sheet and off-balance sheet exposure of a regional S-BIS. 

List of UMOA systemically important banking establishments (EBIS)

(Updated as of december 31, 2024)

Banking establishments of regional systemic importance (7)

National Systemically Important Banking Establishments (26)

List of establishments subject to the resolution regime