The balance of banking activities in the area of West African Economic and Monetary Union (WAEMU) is positive when we refer to the data published by the Central Bank of West African States, Tuesday, August 21, 2018.
According to the institution, the annual accumulation of fixed-term deposits at the opening of new accounts in UEMOA banks amounted to CFE 8,396 billion, or nearly $ 14.2 billion. 2017. For BCEAO, this amount represents an increase of 337 billion CFA francs, or 4.2%, compared to the total amount of 8,059 billion CFA francs registered in 2016.
The issuer of the West African space estimated that this increase is related to the increase in time deposits by public companies (17.6%), households (10.0%) and private companies in the productive sector ( plus 5.0%).
The general increase in time deposits during the opening of new accounts is also a result of the performance at the state level. In Senegal, for example, there is an increase of 42.9%. The same trend in Ivory Coast, with an increase of 17.1%, in Mali with an increase of 14.6% and in Benin with an increase of 7.1%. On the other hand, the number of new deposits in countries such as Guinea-Bissau, Togo, Burkina Faso and Niger has fallen by 54%, 28%, 13.8% and 7% respectively. 2%.
81.4% short-term deposit & # 39; s
More specifically, the BCEAO indicated that, according to their duration, the survey of the structure of deposits shows that in 2017 81.4% of deposits are short-term (less than or equal to 2 years) while 21, 6% are medium-term (between 2 years and 5 years) and 5.8% are long-term. BCEAO has explained the preponderance of short-term deposits due to the fact that economic agents are means to meet more or less immediate needs.
"This deposit structure can be an obstacle in the process of lending and financing of the economy, because it limits banks' ability to provide long-term creditSaid the West African financial institution, stating that the mobilization of funds for the financing of the WAEMU economy requires the availability of savings adapted to the need for this funding.