BEAC and BCEAO to strengthen financial integration
The Bank of Central African States (BEAC) and the Central Bank of West African States (BCEAO) have reiterated their willingness to strengthen their bilateral cooperation in a bid to improve access to finance in the region.The Bank of Central African States (BEAC) and the Central Bank of West African States (BCEAO) have reiterated their willingness to strengthen their bilateral cooperation in a bid to improve access to finance in the region.
Both Institutions stated on September 19th in Ndjamena during their annual meeting that they want to head towards "a deeper interconnection of their payment systems and closer ties between bank capital markets".
According to Les Afriques newspaper, the year 2013 has been designated as the year that will witness the establishment of a deeper relationship between the institutions – as they will share knowledge regarding monetary policy and strengthen the capacity of government bodies within the financial sector.
Banks have also raised the issue of interchangeability between the FCFA in Central Africa and West Africa, which is considered as an obstacle to regional exchanges.
They have decided to establish a joint commission to investigate the conditions of return of banknotes in both regions.
Regional financial integration offers many benefits to African economies. It can increase competition and innovation, reduce inefficiencies in lending given a wider pool of bankable projects and expand opportunities for risk diversification.
It can also help improve regulatory and supervisory bodies and insulate central banks from domestic excess.