{"id":1254,"date":"2023-04-27T12:17:10","date_gmt":"2023-04-27T12:17:10","guid":{"rendered":"https:\/\/www.fgd-umoa.org\/intervention-framework\/crisis-resolution\/"},"modified":"2023-05-29T22:37:43","modified_gmt":"2023-05-29T22:37:43","slug":"crisis-resolution","status":"publish","type":"page","link":"https:\/\/www.fgd-umoa.org\/en\/intervention-framework\/crisis-resolution\/","title":{"rendered":"Crisis resolution"},"content":{"rendered":"\t\t
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Drawing lessons from the international financial crises, in particular the 2007-2008 subprime crisis, the monetary and financial authorities of the West African Monetary Union have decided to establish a mechanism for the prevention and management of banking crises in the Union.<\/p>\n

To this end, the Council of Ministers of UMOA, by Decision No. 025 of 02\/07\/2015 \/ CM \/ UMOA<\/a> instituted a mechanism for resolving banking crises in the Union.<\/p>\n

This mechanism is articulated around a single Resolution Authority : the Banking Commission of the UMOA (CB-UMOA)<\/a> and a Fund for financing Resolution actions: the Guarantee Fund for Deposits and Resolution in the UMOA.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Attribution and composition from the college of resolution<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Role and responsibilities<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The Resolution College oversees the development and implementation of crisis prevention and resolution measures.<\/p>\n

In particular, he is responsible for :<\/p>\n

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  • to contribute to the preservation of financial stability;<\/li>\n
  • to ensure, in conjunction with the Supervisory College, the implementation of crisis prevention measures;<\/li>\n
  • ensure the implementation of crisis resolution measures;<\/li>\n
  • ensure the continuity of the activities, services and operations of establishments subject to a resolution procedure;<\/li>\n
  • avoid or limit recourse to public financial support;<\/li>\n
  • to ensure the protection of the interests of depositors and creditors.<\/li>\n<\/ul>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Composition<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    The Resolution College has four permanent members :<\/p>\n

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    • the Governor of the Central Bank;<\/li>\n
    • the Representative of the State Supervisory College chairing the Council of Ministers;<\/li>\n
    • the Director of the Deposit Guarantee and Resolution Fund in the UMOA;<\/li>\n
    • a member appointed by the Council of Ministers of the WMOA, on the proposal of the Governor of the BCEAO, because of his competence in the banking, legal or financial fields or in any other field of competence deemed compatible with the envisaged functions.<\/li>\n<\/ul>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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      Resolution Measures<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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      At the request of the Supervisory College, the Resolution College may decide to enter into resolution any reporting institution deemed unviable and with no prospect of a return to viability.<\/p>\n

      The Resolution College may take all measures necessary for the accomplishment of its mission, in particular :<\/p>\n

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      • require any reporting institution, its managers, its corporate officers, its auditors or its employees, to provide all information useful for the implementation of the resolution procedure;<\/li>\n
      • appoint a special administrator responsible for implementing resolution measures and executing decisions of the Resolution Authority. Any stipulation providing, in the context of the institution\u2019s contractual relations, that this appointment is considered an event of default, is deemed unwritten;<\/li>\n
      • dismiss or replace any manager whose responsibility for the situation of the establishment is established;<\/li>\n
      • decide on the automatic transfer of all or part of one or more branches of activity of the establishment;<\/li>\n
      • decide whether to use a bridge institution responsible for receiving, on a provisional basis, all or part of the property, rights and obligations of the institution in resolution, with a view to transfer under the conditions set by the Banking Commission;<\/li>\n
      • transfer to a bridging establishment or any other structure, the shares or company shares issued by the establishment;<\/li>\n
      • involve the Deposit Guarantee and Resolution Fund, in accordance with the provisions in force;<\/li>\n
      • impose the reduction of capital, cancellation of equity securities or liabilities or the conversion of liabilities;<\/li>\n
      • require the institution to issue new shares or shares or other equity instruments, including preference shares and conditional convertible securities;<\/li>\n
      • pronounce, notwithstanding any provision or stipulation to the contrary, a temporary ban on paying all or part of the debts arising prior to the date of resolution;<\/li>\n
      • temporarily limit or prohibit the exercise of certain operations by the establishment;<\/li>\n
      • limit or prohibit the distribution of dividends to shareholders or remuneration of shares to members of the establishment.<\/li>\n<\/ul>\n

        decide on the termination of agreements containing financial obligations for the establishment or the set-off of debts and claims relating to said agreements<\/p>\n

        suspend the exercise of the right to invoke the forfeiture of the term as well as the rights of termination and set-off, provided for in point 13 above, of all or part of a contract concluded with the establishment<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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        Role of the FGDR-UMOA<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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        As part of the financing of resolution actions, the Deposit Guarantee and Resolution Fund intervenes at the request of the Resolution College of the Banking Commission.<\/p>\n

        The Fund\u2019s intervention can only be requested by the Resolution College of the Banking Commission after exhaustion of all private financing solutions.<\/p>\n

        The Board of Directors examines the financing requests for resolution actions and sets the terms and conditions of the Fund\u2019s intervention.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

        Drawing lessons from the international financial crises, in particular the 2007-2008 subprime crisis, the monetary and financial authorities of the West African Monetary Union have decided to establish a mechanism for the prevention and management of banking crises in the Union. To this end, the Council of Ministers of UMOA, by Decision No. 025 of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":1245,"menu_order":1,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-1254","page","type-page","status-publish","hentry"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.fgd-umoa.org\/en\/wp-json\/wp\/v2\/pages\/1254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fgd-umoa.org\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.fgd-umoa.org\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.fgd-umoa.org\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fgd-umoa.org\/en\/wp-json\/wp\/v2\/comments?post=1254"}],"version-history":[{"count":3,"href":"https:\/\/www.fgd-umoa.org\/en\/wp-json\/wp\/v2\/pages\/1254\/revisions"}],"predecessor-version":[{"id":1391,"href":"https:\/\/www.fgd-umoa.org\/en\/wp-json\/wp\/v2\/pages\/1254\/revisions\/1391"}],"up":[{"embeddable":true,"href":"https:\/\/www.fgd-umoa.org\/en\/wp-json\/wp\/v2\/pages\/1245"}],"wp:attachment":[{"href":"https:\/\/www.fgd-umoa.org\/en\/wp-json\/wp\/v2\/media?parent=1254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}