What is CIMA?

1
What is CIMA?
Thirteen countries from West Central Africa

• The same lawsA single supervisory authority

2
Assets regulation

• Kind of assets
• Limits by classes
• Diversification requirements
• Place of these assets
• Member States

3
"Without Risk" Assets

• Bonds issued by member states
• Minimum 15 Maximum 50

4
Liquid Assets

• Bank deposits
• Maximum 40

5
Financing of the economy

• Private bonds listed shares
• Maximum 40
• Real estates
• Maximum 40
• Non listed shares
  
• Maximum 40
• Direct loans  Mortgage
  Loans guaranteed by a bank
• Maximum 10

6
A mainly conservative regulation Safe,
Liquid profitable assets State bonds are
regarded as typical  without risk 
asset Listed Shares are in principle
liquid Bank deposit are safe and liquid when
banking system is sound.
7
Some problems

• Weakness of public finances and banking
  system
• Low activity of markets

8
Weakness of public finances and banking system

• States some have too often payment difficulties
• State bonds are not enough liquid .
• Banking system too many failures

9
Low activity of markets

• Abidjan Stock market has a very low activity
• Real estate markets are weak in many towns
• Other investments Lack of safety liquidity

10
Local Assets

• On a pure prudential approach it would not be
  necessary
• These countries belong to a monetary area
  But there is a strong willingness from the
  political authorities that the investments of the
  insurance companies were helpful for the local
  economy

11
Which solutions ?

• A better financial economic stability
• Reliable banking sector
• Sound public finances

12
At long term

• Actually working markets