The deposit insurance mechanism implemented by the FGDR-UMOA aims to protect depositors by providing them with compensation in the event of the bankruptcy of a credit institution or a decentralized financial system in the UMOA.
It thus reduces the risk of chain reaction and contagion to the entire financial system.
It strengthens public confidence in the banking system and increases the efficiency of financial intermediation.
For MFIs, such a device reinforces the provisions in force to make the sector a sustainable source of financing for the economy.
The FGDR-UMOA thus participates in strengthening financial stability in the West African Monetary Union.