BCEAO Instructions on Financial Reporting and Prudential Ratios for PARMEC Institutions

WAEMU

(enacted in 1998)

BCEAO Instructions on Financial Reporting and Prudential Ratios for PARMEC Institutions of 1998 (Instructions de la Banque Centrale Relatives aux Normes d’Établissement des États Financiers et de Détermination des Ratios Prudentiels Applicables aux Systèmes Financiers Décentralisés), issued by the Central Bank of West African States (BCEAO), define the standards required for the preparation of financial statements and prudential ratios for institutions under the PARMEC law.

These instructions address the following eight topics:

  • requirement for microfinance institutions (MFIs) to produce financial statements;
  • assets;
  • classification of credit according to repayment terms;
  • overdue loans;
  • receivables and payables;
  • procedures for determining prudential ratios;
  • obligation to produce an annual report; and
  • requirement for structures or unincorporated organizations acting as mutual or cooperative savings and credit institutions to produce annual reports.

DISCLAIMER: Due to the fact that an official English translation was unavailable for these instructions, information for this summary has been taken from secondary sources and unofficial translations and not from review of the actual legal text.