Another era, other mores. New indicators for Benin's banking sector point to a decline
deposit history. Like wildfire, the news published on the WAEMU website was very early
picked up by the media. The Bceao report on banking conditions in the sub-regional space
UEMOA reveals that term deposits declined by 4.6% in 2018. If for the detractors of the
Regime of rupture, this decline is a consequence of the economic health or the result of the basket of
the precarious housewife, the warned, specialists and regulars of the banks remain formal and strict. This is according to them, a good sign for the Beninese economy shaken by bold reforms since April
2016.
At first glance, one might think of an economic recession, but far from this impossible hypothesis
reflected in the evolution of GDP which is slowly and surely progressing towards double wonders if this decrease is not the result of the remediation measures.
If we all agree that we must have liquidity before saving, logic dictates that in banks the
Term deposits increase if and only if economic activity in the country increases.
Beyond this parameter, several other factors explain this decrease in deposits during the year 2018.
In terms of the fight against corruption, this is explained by the fact that the fight against the scourge is
its fruits. The agents of the administration who were enriched there have no choice but to side with it. In
testify to the different scores obtained by the country in 2018. With Talon's economic reforms,
each citizen earns according to his daily economic activity. Goodbye dirty money. And like
Resonant effect, the easy gains in the meantime paid into the accounts of the promoters of corruption
disappear or even die gradually.
In the first quarter of 2018, the National Financial Information Processing Unit (CENTIF) in
collaboration with the European Union and GIABA had already welcomed the progress made by Benin in
anti-money laundering.
The other factor that should hardly be overlooked is the reduction or even the abolition of certain premiums in
ministries and Crown corporations with the aim of rationalizing public resources. In this wave of the
new administrative dynamics include the prohibition on the organization of workshops and seminars
fanciful inside the country previously transformed into a source of income for many
Officials. As a result, many executives are now forced to settle for their salaries.
In this set of mobiles explaining this decline in term deposits, the decline in diversions, without
forgetting the cash cow of public procurement has something to do with it. In today< Benin, the
executives no longer take the risk of demanding bribes before fulfilling their duties
professionals.
With this panoply of factors, the decline in deposits at the bank level is inevitable. Rather than
to take the news as a negative economic fact, it is better to rejoice because, even if the
Reforms seem painful and bitter, this contributes to the emergence of a dynamic economy and
durable.