Like the sub-region, the banking network continues its expansion in Benin with 9.2% of Umoa's market share at the end of 2019, according to a latest report by the Union's Banking Commission.

With 15 banks for a total balance sheet of 3,795.0 billion CFA francs, the Benin network holds a 9.2% market share at the end of 2019, according to the 2019 Annual Report of the Banking Commission of the West African Monetary Union (Umoa). According to the document published last Tuesday by the Central Bank of West African States, they house at least 1,973,254 bank accounts (compared to 1,566,902 in 2018) housed in 254 branches, offices and points of sale.

The country's banking institutions have 337 automated banking machines (ATMs) compared to 295 at the end of 2018, i.e. 42 new units installed in 2019.C is the strongest increase noted in this area within the Union.

The national financial landscape has been marked by the approval of the Africaine des garanties et du cautionnement (Afgc) as a financial institution of a banking nature, but this company has not yet started its activities. Thus, Benin has 16 approved credit institutions out of a total of 153 in Umoa.

The minimum solvency ratio of credit institutions is 9.8% compared to 17.1% in Niger, 13.8% in Burkina Faso, 13.0% in Mali, 12.7% in Senegal. The Liquidity Coefficient, which prevents short-term liquidity risks in the banking system, stands at 110% for Benin.

In the electronic money sector, the issuing activity is also experiencing a boom in activity as in all the States of the Union, thanks to the development of the offer of financial services backed by mobile telephony. Benin has one electronic money institution (Eme) on di approved in total in the sub-region; a DSF operates in this sector and partnerships are forged between banks and telecommunications operators.

Sfd, the catch!

The total balance sheet of decentralized financial systems (Sfd) stands at 188.2 billion CFA francs, or 9.0% of the Union, which has a total of 2,083.5 billion CFA francs in 2019. The capitalization ratio of Sfd is 32.7% in Benin, far from that of the Union which is 19.9%.

Despite the strong financial inclusion it induces, the country's microfinance sector continues to give the Umoa Banking Commission a hard time. Thus, as a disciplinary sanction, it proceeded to the liquidation of a decentralized financial system installed in Benin, which was the subject of a withdrawal of approval following a disciplinary procedure, and this, in view of its situation marked mainly by the cessation since 2017 of the credit distribution activity. Another Sfd is put under provisional administration.

Blmes are pronounced against deu Sfd established in Benin and against the President of the Board of Directors and the general directors of three Sfd in Benin. A warning shall be sent to a credit institution.

A suspension is pronounced against a chairman of the Board of Directors of a Sfd as well as prohibitions to direct, administer or manage a Sfd or any other institution subject to the supervision of the Banking Commission against a Chairman of the Board of Directors and an e-chief executive officer of a Sfd in Benin.

It should be noted that the Banking Commission issued 31 injunctions during the 2019 financial year against 50 in 2018 in Umoa.

Some figures from the Union

As of December 31, 2019, the banking system in Umoa includes 130 banks including 19 branches, and 21 financial institutions of a banking nature including 4 branches. According to data from the Umoa Banking Commission, there are 64 international banks with almost half of the market share (49.10 per cent), 63 subregional banks (44.6 per cent), one mutual bank and 20 financial institutions of a banking nature.

A total of 148 credit institutions were in operation out of 153 approved institutions in 2019 (147 in December 2018). This development is the result of the authorisation to set up branches and the authorisation of new companies as banks or financial institutions of a banking nature. Five licensed credit institutions had not yet started operations.

13,791,669 bank accounts were housed by 3,728 branches, offices and points of sale, which have 3,378 AUTOMATED banking machines, up 172 units (+5.4%).

The total balance sheet for banks amounted to 41,258.6 billion CFA francs in 2019 against 37,639.7 billion in 2018, an increase of 9.6%.

The total balance sheet for decentralized financial systems also increased, from 1,907.0 billion CFA francs in 2018 to 2,083.5 billion CFA francs in 2019, an increase of 9.3%.

According to the Bceao, the Union had 10 electronic money institutions (EME) authorised in 2019 and having 51,009,424 accounts opened, of which 24,284,589 were active.

Provisional comprehensive net income grew by 42.9% to $542.3 billion at the end of 2019 from $379.4 billion in 2018.C U.P.