Dakar, Oct 10 (APS) – The chief of staff of the Minister of Finance and Budget, Bassirou Sarr, welcomed Thursday the “good performance” of the main indicators of activity and profitability of Senegalese banks and microfinance structures , translating into “an increase of 8.8%”.
“Banks’ outstanding loans increased by 8.8% year-on-year to stand at FCFA 7,496.8 billion at the end of June 2024,” he declared during the opening ceremony of the 41st session. of the National Credit Council.
“The quality of the portfolio has improved, with the rate of overdue debts net of provisions standing at 4.6% of total loans,” he explained.
Bassirou Sarr maintains that from the point of view of prudential supervision, “the banks are generally in compliance with the standards set”, which represents “a remarkable result in the context of the end of the transition to Basel 2 and Basel 3 standards in the WAMU since 1st January 2023.
The prudential rules resulting from the Basel agreements aim to guarantee a minimum level of capital, in order to ensure the financial solidity of banks.
According to the chief of staff of the Minister of Finance and Budget, the average solvency ratio of Senegalese banking establishments stands at “15.2% at the end of June 2024 for a minimum standard of 11.5%”.
Concerning the microfinance sector, he adds, “the outstanding credits distributed to members and customers increased by 20% year-on-year, reaching 780 billion at the end of June 2024”.
He also indicated that “the quality of the portfolio has also improved with a gross rate of degradation standing at 6.7% in June 2024 compared to 6.5% in June 2023”.
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