The BCEAO urges West African banks to lower interest rates

Dec 04, 2012

The Central Bank of West African States (BCEAO) has asked banks in the region to lower interest rates on loans.

The Central Bank of West African States (BCEAO) has asked banks in the region to lower interest rates on loans.

Tiémoko Meyliet Koné, Governor of the Central Bank of the States of West Africa, said at a conference on December 2nd in Dakar that banks must "strengthen transparency rules when it comes to accessing customer information and apply a fair price on banking services," Le Soleil reports.

The governor urged financial institutions to support this approach by consolidating their financial risk management policy and by diversifying their products and customer base.

According to the press release, the presidents of professional associations of banks and financial institutions of the UEMOA (Apbef) have acknowledged the need to quickly adapt their pricing strategy to mutations affecting the environment of their activities.

However, they believe that the BCEAO must also introduce control mechanisms over borrowers' profiles – as well as improving tax fairness, acknowledgment of their rights as creditors and the visibility on economic guidelines.ADNFCR-2976-ID-801500410-ADNFCR