Financial Integration in the West African Economic and Monetary Union

25 Pages Posted: 31 Oct 2006

See all articles by Amadou Nicolas Racine Sy

Amadou Nicolas Racine Sy

International Monetary Fund (IMF) - International Capital Markets Department; Brookings Institution

Date Written: September 2006

Abstract

This study assesses the degree of financial integration in the West African Economic and Monetary Union (WAEMU). The structure of the financial sector and its institutional arrangements indicate that financial integration is well advanced in some aspects. Common and foreign ownership of banks is very high and cross-border transactions are frequent in the government securities markets. Common institutions help achieve a high degree of similarity of rules. There is nonetheless scope for further financial integration as indicated by persistent deviations from the law of one price, limited cross-border bank transactions, and differences in treatment. Policy measures could therefore help achieve greater financial convergence.

Keywords: BCEAO, Financial integration, Sigma- and Beta- Convergence, WAEMU

JEL Classification: G21, G28

Suggested Citation

Sy, Amadou Nicolas Racine, Financial Integration in the West African Economic and Monetary Union (September 2006). IMF Working Paper No. 06/214, Available at SSRN: https://ssrn.com/abstract=941276

Amadou Nicolas Racine Sy (Contact Author)

International Monetary Fund (IMF) - International Capital Markets Department ( email )

700 19th Street NW
Room 9-548
Washington, DC 20431
United States
202-623-8651 (Phone)
202-589-8561 (Fax)

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
307
Abstract Views
1,813
rank
111,766
PlumX Metrics