This study assesses the degree of financial integration in the West African Economic
Monetary Union (WAEMU). The structure of the financial sector and its institutional
arrangements indicate that financial integration is well advanced in some aspects.
and foreign ownership of banks is very high and cross-border transactions are frequent
government securities markets. Common institutions help achieve a high degree of
of rules. There is nonetheless scope for further financial integration as indicated
deviations from the law of one price, limited cross-border bank transactions, and
in treatment. Policy measures could therefore help achieve greater financial convergence.