Lome - Togo — Bankers in West Africa have been called upon to support the initiative by the ECOWAS Commission to fast-tract financial integration in the region as a precursor to the creation of a single currency.
Speaking at the inaugural West African Bankers Forum on Tuesday 29th November 2011 in Lome, Togo, the President of the ECOWAS Commission, His Excellency James Victor Gbeho said the desired integration involves the strengthening of the links among the financial systems of Member States including their money and capital market.
According to him, financial integration will pool scarce savings, viable investment projects and financial infrastructure; increase the numbers and types of financial institutions and instruments; increase competition and innovation; reduce inefficiencies in lending for bankable projects and expand opportunities for risk diversification. It will also improve regulatory and supervisory bodies; insulate central banks from domestic excesses; harmonize regional laws and institutions and create additional opportunities for learning.
The President extolled the value of a strong integrated regional financial market, supported by appropriate institutions and implementation strategies in the regional integration agenda and within the context of realizing the common market objectives of the region. To this end, he stressed the urgent need to fast track the actualization of the common market which entails harmonization of financial services; monetary cooperation; capital market integration and incentives policy harmonization among others. Citing examples from other parts of the world, the President noted that the envisaged integration necessarily requires a considerable level of policy cooperation, coordination and effective harmonization even if it involves the partial loss of sovereignty in national policies in the regional interest.
To facilitate a seamless integration of the financial markets, the ECOWAS boss urged Member States to create a receptive environment through the harmonization of rules and regulations governing domestic financial market and the creation of standards and benchmarks to govern financial integration. At the regional level, he said the Commission was already pursuing other dimensions of the financial integration project such as the integration of the capital markets, the development of a regional payment system, the creation of a regional data base as well as an investment indicators data base.
By instilling confidence in financial cooperation among Member States through the creation of a regional payment system, a regional stock exchange and credit data base, the President said the region will not only be providing the basis for a single harmonized single economic space but will be taking additional steps on the road to a single currency. The President spoke on "Partnering with ECOWAS Commission in its financial integration programmes."
