The National Directorate of the Central Bank of West African States (Bceao) held on Wednesday 18
last December at the headquarters of the issuing institution in Cotonou, the fourth meeting of the year 2019 with
general managers of banks and financial institutions in Benin to assess the evolution of
banking activities in recent months.</a></a>
Banking activity within the West African Economic and Monetary Union (UEMOA) remained strong
during the year 2018. This is a conclusion of the report of the WAEMU Banking Commission presented
to general managers of banks and financial institutions in Benin.
According to the national director for Benin of the Bceao, Alain Komaclo, the total balance sheet of the establishments of
credit increased by 8.8% year-on-year to stand at FCfa 37,752.9 million as of 31
December 2018. During the press briefing he hosted with the president of the Professional Association
Banks and Financial Institutions of Benin (Apbef-Benin) Lazare Noulékou, at the end of the
meeting, Alain Komaclo explained that banking jobs increased by 7.3% to settle
to FCfa 32,798.1 million. While resources amounted to 29,848.4 million francs
Cfa up 10.4% compared to the level reached at the end of 2017.
For the national director of the Bceao, almost all credit institutions subject to it are in good standing
vis-à-vis the standard of representativeness of the minimum share capital of FCfa 10 billion in force
in the Union since July 1, 2017. And the solvency ratio of the banking system of the Union stood at
10.8% in 2018, above the minimum regulatory threshold set at 8.625%.
Continued portfolio improvement
Directors of banks and financial institutions noted during the meeting that in Benin, the
main project concerns the continued improvement of the quality of the portfolio. To this end, they mean
through the Apbef, according to its president, Lazare Noulékou, to reinforce the actions undertaken with the support of
national authorities, in particular the Minister for the Economy and Finance and his colleague for Justice in
in order to control the evolution of the gross rate of deterioration of the portfolio in a downward trend.
The president of Apbef-Benin reassures that thanks to the actions undertaken with the national authorities, we can
rejoice in Benin's banking resilience to the economic situation that the country is going through. He recalled the
actions undertaken this year, in particular the mechanism for implementing support for SMEs/SMIs, and
other projects.
At the level of Apbef-Benin, Lazare Noulékou reassures of the continued consolidation of the portfolio
with the support of the Ministry of Economy and Finance, then of the Ministry in charge of Justice of
so as to reduce the deterioration rate, which was above 20%, to below 20% at 31 December
2019. Then, from the participation of banks in financing the economy so as to boost the
growth above 6%.
The meeting was also an opportunity for leaders of banks and financial institutions to follow
a communication relating to a partnership agreement between the Ministry in charge of Small and Medium
undertaken via the National Agency for the Promotion of SMEs/SMIs (Anpme) and the Development Support Project
agribusiness in Benin (Pdab). A project that falls within the framework of the implementation of the
support for the financing of SMEs/SMIs in the UEMOA space. The presentation which was addressed to the leaders of the
banks, according to the national director of the Bceao, comes to reinforce the initiatives which are taken for a
better financing of SMEs and then for better financing of the Beninese economy.