Pursuant to the provisions of Article 2 of the Convention, the WAMU Banking Commission shall be responsible for maintaining a sound and secure banking system in WAMU, in particular through the supervision of regulated institutions (credit institutions, financial companies, decentralized financial systems and electronic money institutions) and the resolution of banking crises. It ensures the protection of depositors and contributes to maintaining the stability of the regional financial system.
Organization and remit
Since January 1, 2018, the WAMU Banking Commission has been divided into two decision-making bodies, namely the Supervisory College and the Resolution College.
The Supervisory College maintains and continues the implementation of the missions carried out by the WAMU Banking Commission before January 1, 2018. These missions relate to acts and operations relating in particular to approval, various authorizations, the control of subject institutions, the taking, where appropriate, of all administrative measures and disciplinary or financial sanctions as well as cooperation with other Supervisory Authorities.
Its main attributions consist of :
- provide opinions in accordance with the requests for approval, various authorizations or exemptions submitted to it ;
- ensure, at all times, that the establishments subject to the Act comply with the legal and regulatory provisions governing their activities ;
- monitor and assess events that may have negative consequences on the solidity of of the Union banking system ;
- ensure compliance by subject institutions with their professional obligations arising from other legislation applicable to them ;
- take, in a timely manner, all administrative measures and all disciplinary or financial sanctions aimed at remedying problems of safety and soundness of a subject institution ;
- manage relations with the competent supervisory authorities of the host and home countries of the subject institutions.
Chaired by the Governor of the Central Bank, this College is composed of in addition to the following members :
- a representative designated or appointed by each Member State of the WAEMU, namely the Director of the Public Treasury or the Head of the Supervisory Directorate of Credit Institutions ;
- members appointed by the Council of Ministers of the WAEMU, on the proposal of the Governor of the Central Bank, because of their expertise in the banking, legal or financial fields or in any other area of expertise deemed compatible with the functions envisaged. Their number is equal to that of the members representing the Member States.
The Resolution College has specific powers conferred on it by the banking crisis prevention and management system. In this respect, its action consists of :
- contributing to the preservation of the stability financial ;
- ensure, in conjunction with the Supervisory Board, the implementation of crisis prevention measures ;
- ensure the implementation of crisis resolution measures ;
- ensure the continuity of activities, services and operations of establishments subject to a resolution procedure ;
- avoid or limit recourse to public financial support ;
- ensure the protection of the interests of depositors and creditors.
The Resolution College comprises four permanent members :
- the Governor of the Central Bank ;
- the Representative on the State Supervisory College chairing the Council of Ministers ;
- the Director of the Deposit Guarantee and Resolution Fund in the WAEMU ;
- a member appointed by the Council of Ministers of the WAEMU, on the proposal of the Governor of the BCEAO, because of his competence in the banking, legal or financial fields or in any other area of competence deemed compatible with the functions envisaged.
When a taxable establishment is subject to a resolution procedure, the Representative on the Supervisory Board of the State of establishment concerned is invited to participate in the work, as a non-permanent member with voting rights.
Code of Ethics of the Members of the WAMU Banking Commission
The exercise of the functions of a member of the WAMU Banking Commission is incompatible with any function or mandate, paid or not, in a taxable institution or in a professional association representing taxable institutions. In addition, persons who are prohibited from directing, administering or managing a taxable institution, a commercial, industrial, cooperative or craft enterprise in the territory of a WAMU Member State or in a third State may not be members of the WAMU Banking Commission. The members of the WAMU Banking Commission are also bound by professional secrecy.
These rules are specified in the Code of Ethics of the members of the WAMU Banking Commission. This Code also deals with situations of conflicts of interest that may affect a member of the WAMU Banking Commission.
Operation
The Governor of the Central Bank of West African States (BCEAO or Central Bank) is the statutory President of the WAEMU Banking Commission.
The WAEMU Banking Commission has a Secretariat, headed by a Secretary General assisted by of two Deputy Secretaries General, all appointed by the Governor of the BCEAO from among the staff of the Central Bank.
The BCEAO provides the secretariat and covers the operating costs of the WAMU Banking Commission.
The rules for convening, the procedures for holding meetings and for taking decisions of the WAEMU Banking Commission, provided for in the Annex to the Convention, are explained in the Internal Regulations of the WAMU Banking Commission.
It emerges in particular that the WAMU Banking Commission meets as often as necessary, at the initiative of its President or at the request of one third (1/3) of its members, at least two (2) times a year for the Supervisory College and at least one (1) time a year for the Resolution College. The two colleges may meet in plenary session.
The WAMU Banking Commission may hold its meetings by videoconference or by other means of telecommunication allowing the identification of participants and ensuring the conditions for preserving the confidentiality of deliberations.
Decisions are taken by a majority of votes cast. In the event of a tie, the President's vote shall be decisive.
The decisions of the WAMU Banking Commission shall be enforceable upon notification to the interested parties. They may be appealed only before the Council of Ministers of the Union.
Furthermore, the WAMU Council of Ministers shall be kept regularly informed by the WAMU Banking Commission of the conclusions of its work.
