The Central Bank of West African States’ Financial Stability Committee of the West African Monetary Union (CSF-UMOA) issued a communiqué after its 27th ordinary session, reviewing economic and financial conditions in the first half of 2025 and concluding that the UMOA financial sector remained dynamic while facing external and regional vulnerabilities over the short to medium term. Banks’ average total capital adequacy ratio increased and remained above the minimum requirement, regional stock market benchmark indices recorded notable gains, insurers’ solvency ratios exceeded the minimum, and social security institutions were assessed as having sufficient resources to meet short-term obligations. The Committee nonetheless highlighted risks from trade and geopolitical tensions, inflation remaining above central bank targets in some regions, deteriorating sovereign debt sustainability indicators globally, and more frequent and sophisticated fraud, alongside regional security challenges in some member states and rising climate-change and cybercrime risks. It recommended heightened vigilance by member states and financial-sector regulators and supervisors, stronger cooperation, and continued actions to bolster the resilience of the regional financial system.
Central Bank of West African States 2025-07-10
Central Bank of West African States Financial Stability Committee identifies UMOA vulnerabilities and issues recommendations to member states and regulators
The Central Bank of West African States’ Financial Stability Committee reported that the UMOA financial sector remains dynamic but faces short- to medium-term vulnerabilities. Despite improvements in capital adequacy and solvency ratios, risks persist from trade tensions, inflation, sovereign debt sustainability, and regional security challenges. The Committee urged increased vigilance, cooperation, and resilience-building measures among member states and financial regulators.