The Deposit Insurance Fund in the West African Monetary Union (FGD-UMOA) was created by Decision No. 088-03-2014 of March 21, 2014, of the Governor of the Central Bank of African States of AfricaWest (BCEAO).
Further to the decision of the Council of Ministers of the West African Monetary Union to institute a banking crisis resolution mechanism, the missions of the FGD-UMOA were extended to the financing of resolution actions.
The Fund has therefore changed its name to become the Deposit Insurance and Resolution Fund in the West African Monetary Union (FGDR-UMOA) following the Decision of the Governor of the BCEAO N° 301-09-2018 amending and supplementing the Decision n°088-03-2014 of March 21, 2014 mentioned above.
The FGDR-UMOA is a community institution, of an economic and financial nature, endowed with legal personality and financial autonomy.
Its objectives are to :
- protect small depositors against the loss of their savings in the event of cessation of payments from a credit institution or a member Decentralized Financial System (Microfinance institutions);
- contribute to the implementation of the banking crisis resolution measures decided by the Resolution College of the Banking Commission of the UMOA;
- participate in preserving the stability of the banking and microfinance sectors in the Union;
- contribute to the promotion of financial literacy in the member states of the WAMU.
The FGDR-UMOA consists of a deposit guarantee mechanism comprising a window for Banking Institutions and a window for Microfinance Institutions, as well as a mechanism for financing resolution actions.