By Kebba Ansu Manneh
Buah Saidy, Governor of the Central Bank of The Gambia (CBG) has observed that the harmonization of operational and regulatory frameworks for banking and microfinance institutions will go a long way to create stability in the financial sector.
Governor Saidy made this remark among others in his opening statement at a regional workshop of the expert committee on the harmonization of a regulatory and supervisory framework for banking and microfinance institutions in ECOWAS member states frameworks organized by the banking and West Africa Monetary Agency (WAMA) in collaboration with the Central Bank of The Gambia on Monday, 20th June 2022, in Banjul.
“As indicated by the Director-General of WAMA, the regulatory and supervisory frameworks for banking and microfinance institutions in force within ECOWAS have a heterogeneous structure because they are centralized in the WAMU zone and decentralized in WAMZ member states and Cape Verde. Under these conditions, the disparity of regulatory policies within the region often hinders cross-border trade,” Governor Saidy observed.
He added: “Hence the need to undertake this process of harmonization and operationalization of the regulatory and supervisory frameworks of banking and microfinance institutions in ECOWAS Member States in order to provide a common platform that would reduce systemic risks within the region, to strengthen the financial systems and to increase the stability of the banking system.”
According to him, Central Bank of ECOWAS Member States have proven expertise with adequate knowledge of the regulatory environment of the different economies and with perfect mastery of national supervisory and regulatory frameworks, adding that with the valuable collaboration of the West African Monetary Institute (WAMI) in carrying out this regulatory and supervisory framework.
“Indeed, WAMI which was a forerunner of the realization of similar work within its six Member States could be an essential contributor so that together, we can manage to carry out the work of integration in our Members States, dear to our founding fathers,” CBG Governor highlighted the importance of WAMI in the project.
He added: “Allow me, in this regard, to express my profound gratitude to the Governors of the Central Banks who spontaneously authorized their staff to take part in the work of the committee of experts.
It is also an opportunity for me to reiterate my appreciation to the Director General and staff of WAMA for their commitment to the work of building a strong and united regional community.” CBG Chief continued that given the emergence of new distribution channels couple with the low rate of banking among the adult population, the non-existence of procedures for dealing with credit institutions in difficulty as well as the related resolution measures, it is necessary to put in place regulations that take into account the evolution and specificity of operations and risks relating to the banking system and the financial sector.
He urged participants to also reflect and neither omit the new changes in the landscape of banking and financial systems, carried greater risks that should be addressed, while encouraging participants to demonstrate a spirit of consensus, humility, and determination so that their work can lead to results that make banking and microfinance institutions in the sub-region more resilient, but above all that protect consumers and contribute to the harmonious.
Dr. Olorunsola E. Olowofeso, Director General of WAMI, expressed his gratitude to ECOWAS Heads of States and Governments for their continued commitment to the creation of the Monetary Union, while commending WAMA for the invitation and the privilege accorded to WAMI to make a presentation at this important convergence
WAMI Director-General highlighted the importance of harmonizing regulatory and supervisory frameworks for the creation of a monetary union as documented in ECOWAS extant literature cannot be overemphasized, adding that the Workshop will provide the opportunity to practitioners in the Banking and Microfinance space of Ecowas to harmonize their respective Acts in preparation for the launch of the ECO.
