How does the regulatory framework for savings and credit institutions in the world
Since the adoption in 1993 of the first law regulatory framework for savings and credit institutions (or “Law PARMEC” Support Project for the Regulation of Mutual Savings and Loan), the decentralized finance sector in countries Economic and Monetary Union of West Africa (UEMOA) continues to grow, which comprises a growing number of customers involved and the economic development of the region.
The implementation of this law went to a proliferation of institutions of all sizes and nature: Supported (members or IMCEC), recognized (savings and credit groups), or authorized under the Convention (partnerships).
This strong growth in the number of Miss continues to reveal shortcomings and dysfunctions of the regulatory PARMEC identified through:
- Inadequate control authorities or precarious, difficulties in the provision and implementation of sanctions and failures in the collection of financial information.
- Weaknesses in internal controls in Miss and lack of information and management systems, which is impacting the reliability of financial statements and credit analysis procedures.
These gaps are a brake on development of the sector on a sound basis and perennials. The Central Bank of West African States (BCEAO) and a set of actors in microfinance have initiated an update of the legal framework adopted by the Council of Ministers of the UEMOA in a meeting held on 6 April 2007 Loma.
This new legal corpus to be adopted by the various parliaments of the countries of the region (as adopted in Guinea Bissau and Senegal) and suggests two main objectives: to ensure the stability of the sector and to strengthen monitoring of Miss as a whole and all levels.
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