BCEAO releases $ 6 billion for West African economies

The BCEAO has just made a liquidity injection of 3350 billion FCFA ($ 6 billion) at a fixed rate of 2% in favor of several banks of the UMOA. A total of 87 financial institutions participated in the operation. The Central Bank of West African States (BCEAO) made a further injection of liquidity to its member countries last week. In total, 3350 billion FCFA ($ 6 billion) were disbursed by the institution.

During the auction on September 14, 87 banks in the sub-region obtained an injection of liquidity at a fixed rate of 2%. With more than 1000 billion FCFA ($ 1.8 billion), it is the Ivory Coast which obtained the most important financing, ie 31% of the funds injected.

It is followed by Senegal with more than 580 billion FCFA ($ 1 billion), Mali with 466 billion FCFA (835 million $), Benin with 434.5 billion FCFA (777 million $) and Burkina Faso with 318 billion FCFA. ($ 569 million). Niger with 241.6 billion FCFA ($ 432 million), Togo with 219 billion FCFA (…

Borrower insurance: Bercy focuses on banking practices

Bercy is currently looking into the French loan insurance market and more specifically the practices of banks. French Socialist Senator Martial Bourquin, author of several amendments aimed at further liberalizing the loan insurance market, recently wrote to French Minister Bruno Le Maire.

The elected official wanted to make him aware of "the situation of brokers", after having been "alerted by the Professional Association of Credit Intermediaries (APIC)" which accuses banks of illegal practices. "It would seem that the banks are currently putting pressure on brokers with many obstacles," so in particular "that they offer bank loan insurance as insurance and do not compete,"

French borrower insurance market

In his response to the parliamentarian, Bruno Le Maire wrote that he had asked the Directorate General for Competition, Consumption and the Suppression of Fraud (DGCCRF) as well as the Treasury to "take stock of this matter". The minister promised to "provide a response as soon as possible," according to a letter dated February 10, of which the AFP obtained a copy, confirming information from Les Echos.

In his letter, Martial Bourquin also denounced the fact that “in December 2019, several banking groups modified the conventions they have with brokers: reduction in banking commission, handling fees for clients which are increasing, and deconventing if too many insurance delegations made by the broker”.

Estimated at 9 billion euros, the French borrower insurance market, highly coveted in a context of low rates which are eroding bank margins on loans, remains largely dominated by banking establishments which generally benefit from the signing of a ready to place their "home" credit insurance.

In 2010, the Lagarde law opened the possibility for the borrower to choose a different insurance than that proposed by his bank. In 2018, an amendment brought by Martial Bourquin had also made it possible to renegotiate every borrower insurance contract each year, a device further reinforced in October by a new text adopted in the Senate specifying various provisions, but without any real success for the moment.