Niger- Banking SystemsNiger- Banking Systems
The Central Bank of West African States (BCEAO), a central bank common to the eight members of WAEMU, governs Niger’s banking system. Along with BCEAO, the Commission Bancaire is a supranational supervisory entity created in April 1990 to control financial institutions. The eight member countries use the CFA franc issued by the BCEAO and pegged to the euro at a rate of one euro to 656 CFA francs. The French Treasury guarantees parity and fixed convertibility. BCEAO has an operating account at the French Treasury where it is required to hold at least 65 percent of its foreign exchange reserves.
Eleven commercial banks and one financial institution operate in Niger. The system is characterized by over-liquidity of banks and their hesitancy to make medium or long-term loans.
The banking system is served by four medium-sized local banks: BIA Niger (Banque Internationale pour l’Afrique), Ecobank, Bank of Africa and SONIBANK (Société Nigerienne de Banque) that share 80% of the market:
Eleven commercial banks and one financial institution operate in Niger. The system is characterized by over-liquidity of banks and their hesitancy to make medium or long-term loans.
The banking system is served by four medium-sized local banks: BIA Niger (Banque Internationale pour l’Afrique), Ecobank, Bank of Africa and SONIBANK (Société Nigerienne de Banque) that share 80% of the market:
- BIA (Banque International pour l’Afrique) has a large international network in Africa and Europe (Brussels, Paris, and London) with capital of 7 billion CFA (approximately $14 million). Its customers range from big industries, commercial and agricultural companies to small- and medium-sized companies and it has offices throughout the country. BIA’s market strategy is focused on its larger clients. BIA is the largest local bank with 45% of the banking market and a large, stable clientele. With its long experience, the bank tends to tailor its services to the needs and constraints of its customers.
- SONIBANK (Société Nigerienne de Banque) has a large international partnership network (Natix Bank Paris, BNP, Credit Lyonnais, Credit Suisse, NWB London, DG Bank Frankfort, Bank of Montreal, Brussels Bank, Union Tunisienne de Banque) with capital of 12 billion CFA ($20.5 million). It has offices throughout Niger and a broad clientele in all sectors. Its client base includes small enterprises, distributors, insurance companies, manufacturing and mining industries, water, electricity and petroleum companies, transportation companies, all construction and agriculture companies, NGOs, and donor-funded development projects. Sonibank’s market strategy focuses on its network of smaller clients.
- ECOBANK bases its marketing strategy on Citibank’s model, and its business management style reflects U.S. rather than French norms. Ecobank has an impressive network spread throughout West and parts of Central Africa. Its main customers include business people, NGOs, international organizations, development projects, some local companies, and households. It attempts to attract regional tradesmen who benefit from electronic money transfers as opposed to more risky cross-border courier serves. Ecobank has expanded considerably over the past several years, while its growth is reflected by the numerous offices and branches established since its opening. Ecobank Niger offers highly developed technology and a communication system that contribute to its expansion. Apart from traditional services and products, the bank also offers services like telephone banking, Internet banking, zap banking (mobile banking service that provide customers with increased security and flexibility) and the Ecobank regional card.
- BOA (Bank of Africa) has a large international network in Africa and Europe. Its initial market strategy attempted to gain the trust of large organizations and enterprises. This plan failed, because Niamey had too small of a client base to support another bank. Therefore, it broadened its strategy to include small= and medium-sized companies, projects, NGOs, international organizations, businesses, and private individuals.
- BINCI (Banque Islamique du Niger pour le Commerce et l’Investissement), established in 1997, is a member of Daral Maal Islammi (DMI) Group. The bank’s capital is 14 billion CFA (approximately $24.1 million). The bank’s major partners are Trust Bank, Citibank, ABN AMRO and UBAF. Its main customers include industries and commercial businesses, but it does not have a clearly defined marketing strategy.
- Banque Atlantique Niger, established in June 2006, is a member of the Atlantique Banque Group based in Côte d’Ivoire. The bank has a capital share of 7.5 billion CFA (approximately $12.9 million). Their main correspondents are UBAF (Union des Banques Arabes et Françaises) BNP France, Fortis Bank, BOAD and London Charter Bank. The Group Banque Atlantique has a representation office in Paris (Banque Atlantique), a company of management and financial intermediation (Atlantique Finances), and a company of services and IT engineering (Atlantique Limited Company Technologies). Banque Atlantique Niger’s main customers are businesses, NGOs, industries, and large private companies. Banque Atlantique Niger has been involved in the main economic sectors of activities, working one on one with various companies and projects in the framework of their development.
- Orabank – formerly known as BRS Niger - is a universal bank, serving both private investors and businesses. Its network includes three branches in Niamey and four others in Agadez, Maradi, Tillabéry and Zinder. Orabank is a pan-African bank with branches in Benin, Burkina-Faso, Côte d'Ivoire, Gabon, Guinea, Guinea Bissau, Mauritania, Mali, Niger, Senegal, Chad and Togo.
- CBAO-Niger (Compagnie Bancaire de l’Afrique de l’Ouest) is a subsidiary of Group Attijariwafa Bank with a network of 3,050 branches throughout the African continent. CBAO opened a branch in Niger in October 2013.