Banking
From The Report: Cote d'Ivoire 2018
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Supported by strong economic growth, the banking industry has expanded rapidly in recent years, financing public and private sector investment in reconstruction since 2011. Profitability among the top-tier banks remains strong, with shareholders in publicly listed institutions benefitting from attractive dividends. Although there has been an influx of new banks over the past decade, increased regulation is expected to weigh heaviest on smaller banks, potentially encouraging mergers and acquisitions, notably by new foreign players. Meanwhile, the proliferation of mobile money has allowed a larger proportion of the population to gain access to financial services, with only 16% of adults in possession of a bank account.

This chapter contains interviews with Tiémoko Meyliet Koné, Governor, La Banque Centrale des Etats de l’Afrique de l’Ouest; and Janine Kacou Diagou, Managing Director, Group NSIA.

Articles from this Chapter

Overview

Record of growth: Several years of strong economic expansion and a large unbanked population have seen the sector extend its reach
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Supported by strong economic growth, the banking sector has expanded rapidly in recent years, financing public and private sector investment in reconstruction after the return of political stability in 2011. Profitability among the top-tier banks remains strong, with shareholders in publicly listed institutions benefitting from attractive dividends. These business opportunities have attracted a number of new players to the market, although these recent entrants are grappling to gain significant…

Interview

Ensuring resilience: Tiémoko Meyliet Koné, Governor, the Central Bank of West African States (Banque Centrale des Etats de l’Afrique de l’Ouest, BCEAO), on stability in the sector
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Interview:Tiémoko Meyliet Koné How will Basel II and III impact the economy? TIÉMOKO MEYLIET KONÉ: The transition toward Basel II and III aims to preserve a solid and resilient banking system across the West African Monetary Union (WAMU) region. The adoption of Basel II and III makes allowances for shifts in the regional and international financial sector, characterised by the diversification of banking products, the expansion of international banking groups’ activities and the increase…

Interview

Facilitating growth: Janine Kacou Diagou, Managing Director, Group NSIA, on the effects of regulatory changes and potential areas for development
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Interview:Janine Kacou Diagou In what ways will the recent regulatory changes impact the financial sector? JANINE KACOU DIAGOU: Ongoing reforms will inevitably have profound impacts on the regional banking system. Indeed, many banks are conducting stress tests to identify strengths and weaknesses as a first step in adapting to international standards. Adhering to Basel II and III guidelines will strengthen banks, since it requires them to increase capital buffers and respect stricter ratios…

Analysis

Digital overground: Mobile banking continues to grow in popularity
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While the bulk of retail bank operations in Côte d’ Ivoire are still conducted through traditional branches, digitalisation has already revolutionised the sector, and there is little evidence that this trend will slow down as technology penetration continues to rapidly expand. Individuals have been able to carry out basic transactions using their mobile phones for a number of years, and small businesses are now increasingly able to make use of such services too. Meanwhile, the range of…

Analysis

Up to code: New regulations bring much-needed reform to the sector
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Banking regulations across the UEMOA region have been expanding in scope over the 2016-18 period, centred around three key pillars: namely the introduction and enforcement of new minimum capital requirements; the migration to the Basel II and Basel III frameworks; and cross-jurisdictional collaboration between West African central banks. New Capital Requirements One of the most significant regulatory changes affecting the Ivorian banking sector in recent years has been the increase in capital…