According to the Evolution of the Togolese Financial System presented in the National Development Plan (NDP), the analysis of the performance indicators of the banking system shows that some banks still seem to face serious problems of solvency because “the financial situation of these has been weakened since 2012-2013 “.
Without mentioning the institutions concerned, the paper points to a deterioration in solvency indicators, asset quality, profitability and liquidity. As a result, he continues, “the average capital adequacy ratios are lower and the ratio of non-performing loans higher than the WAEMU average”, which “indicates that repayment risks are high and therefore the average guarantee requirements are around 235% “.
“To remedy this situation, the government will continue the restructuring of the banking system and will take the necessary steps to maintain its comparative advantage as financial center of the subregion with the presence of African banks,” reads the PND.
To remedy this situation, the government will continue the restructuring of the banking system and will take the necessary measures to maintain its comparative advantage as the financial center of the subregion with the presence of African banks, “according to the PND.
To date, the Togolese banking system has 13 different institutions that share a poorly innovative market. The two leaders in terms of assets are the local subsidiaries of Orabank and Ecobank.
