The Central Bank of Liberia (CBL) has signed a Memorandum of Understanding (M0U) with the West African Monetary Union for the sharing of supervisory information and enhancing cooperation between the two institutions in the area of banking supervision.
The sharing of information covers licensing, monitoring of on-going activities and handling of issues involving banking groups that are operating in both jurisdictions.
The MOU, which was signed by the Executive Governor of the CBL, Dr. J. Mills Jones, and the Governor of the Central Bank of the West African Monetary Union (BCEAO), Mr. Tiemoko MeylietKone, among other things, calls for mutual assistance, exchange of information and collaboration in the monitoring and supervision of banking groups operating in both jurisdictions.
The West African Monetary Union comprises eight countries, namely, Ivory Coast, Senegal, Mali, Togo, Benin, Niger, Burkina Faso and Guinea Bissau.
It can be recalled that in November, 2009, the CBL signed similar MOU with the Central Bank of Nigeria (CBN) with respect to supervision of subsidiaries of parent companies from Nigeria.
The MOU with the CBN has led to greater collaboration between the CBL and CBN, including the conduct of several joint examination exercises of subsidiaries of Nigerian banking groups operating and incorporated in Liberia, and the sharing of information on their parent companies.
In addition to these steps, the CBL is also a signatory to the Charter of the College of Supervisors of West African Monetary Zone (CSWAMZ) and the Charter of the Committeeof Banking Supervisors of West and Central Africa, which is made of regulators and supervisors of West and Central Africa.
These bodies are made of regulators and supervisors of the banking sector that provide the forum for sharing of experience and information, strengthening of cooperation and collaboration, and capacity building.
These are important milestones in the supervisory regime of the CBL, under the stewardship of the Executive Governor of the Bank.