West African Economic and Monetary Union
The West African Economic and Monetary Union (WAEMU) moved to adopt Basel II and III standards in 2016 after implementing Basel I for many years. Given the weak development of the financial sector in the Union and its poor connectedness to the international financial system, this reform was unexpected. The adoption of Basel standards has been championed by the Central Bank of West African States (BCEAO), under the influence of the IMF, which has strongly encouraged implementation. National governments and domestically oriented banks have not played an active role, complicating the implementation and enforcement of the new regulations. The central bank is embedded in regulatory peer networks, has close links with the IMF, and is insulated from domestic political pressure because of its supranational position.