Regulatory Own Funds Maturity · UEMOA Prudential Framework
The quality of your UEMOA own funds, measured by theme and turned into a costed action plan.
9 themes, a 5-level scale. And the action that moves each level to the next.
The framework’s 9 themes, already written from L1 to L5. One company, one business unit, or 300 at once.
Regulatory Own Funds Maturity · UEMOA Prudential Framework
9 themes, 5-level scale.
Nordhavn Industries
53 / 100
They measure their maturity with Datamensio
An example
This could be your situation.
Take one company as an example: three sites, three spreadsheets, no shared answer.
Nobody can consolidate.
Nordhavn Industries, 2,400 people in Hamburg, Lyon and Porto. A client asks where the group stands. Each site answers in its own spreadsheet, with its own scales.
Three weeks, a single base.
One Prudential framework applicable to credit institutions and financial companies of the UMOA (Basel II/III, in force since 2018), BCEAO opinions and instructions relating to regulatory own funds assessment launched across all three sites at once, from the managers’ interview notes. The framework was already written, its 9 themes and levels L1 to L5 too.
Two costs avoided before being committed.
A score of 53 out of 100, with the gap concentrated on three themes. The AI companion spotted that two actions duplicated those of another audit. The committee report took one sentence to request.
What it saved them
- 3sites measured on the same base, instead of three questionnaires to reconcile
- 2duplicate actions caught before the spend
- 1committee report, with no manual rework
These figures are an example. They could be yours.
The standard imposes processes. Datamensio says where you stand.
01
The framework is already written
Themes, questions and levels L1 to L5, all written. You do not start from an empty spreadsheet.
02
The score lands the same day
Online, by self-assessment link or in interview. Theme by theme, comparable over time.
03
The gap becomes a costed plan
Every step up carries its action. The AI prioritises on expected effect, not on the order of the standard.
04
Progress can be demonstrated
Campaign after campaign, against your target and against your own past. That is what your board asks for.
The maturity scale
One level, the next, and the action that links the two.
It is this mechanism (a level, a level above, and the action connecting the two) that turns an observation into a trajectory.
Are the deductions applied to core own funds identified, calculated and documented at each reporting date?
- N1
No written procedure. Deductions are reconstructed at each reporting date, with no trace of the reasoning applied.
- N2
A list of deductions exists and forms the basis of the calculation, but it is carried over from one reporting date to the next without systematic review of items.
- N3
Each deduction is recalculated at the reporting date, linked to an identified accounting item and validated by a second line control.
- N4
The calculation is tool supported, the audit trail traces back from the deduction to the source entry, and gaps between reporting dates are formally explained.
- N5
Deduction rules are reviewed at each regulatory or scope change, with version traceability and simulation of the impact on the ratio before application.
Action to move from level 2 to level 3
Link each deduction line to a trial balance item and a named owner, then include the item by item review in the quarterly closing committee’s work programme, with formal validation by permanent control before returns are submitted.
« With Datamensio, we meet our objectives far more efficiently. The ERDF inspection services and our supervising ministry particularly appreciated an approach that gives them reliable data. »
Director, CCI 94CCI Île-de-France
« We believe this is the most suitable solution to scale our transformation project and measure impact according to our needs. »
Maja SucekChief Operating Officer, Interreg Danube
Rarely on its own
Frameworks combine. Put several together to cover your business, or have the AI write yours.
Take your first measurementon UEMOA.
What this framework covers
The prudential framework applicable to credit institutions and financial companies of the UMOA, effective since 2018, transposes Basel II and Basel III standards to the regional context. It structures regulatory own funds into three components: Common Equity Tier 1 (CET1), Additional Tier 1 (AT1) and Tier 2 capital. It sets the eligibility criteria for each instrument, the list of deductions, the treatment of minority interests, and the capital conservation buffer and countercyclical buffer added on top of minimum requirements.
The difficulty is not knowing the text, it is sustaining the calculation over time. The data feeding the numerator comes from accounting, securities management, legal, and sometimes subsidiaries, with closing schedules that do not align. Who validates the classification of an instrument issued before the framework came into force, and on what basis? Are deductions relating to intangible assets, deferred tax assets and holdings in the financial sector recalculated at each reporting date or simply carried over? Is the move from company accounts to consolidated accounts documented line by line?
Two confusions come up often. The first is treating regulatory own funds as a simple extraction from accounting equity: prudential filters, deductions and eligibility clauses create a permanent gap that needs to be explained. The second is treating the transitional grandfathering arrangements for non eligible instruments as a settled matter: they require year by year monitoring and anticipation of refinancing, particularly when an institution relies on subordinated loans reaching maturity.
The maturity assessment does not answer the same question as prudential supervision. Supervision asks whether the ratio is met at the reporting date. The assessment asks what level of control the framework producing that ratio has reached: is the data traceable, are controls formalised, are projections built into distribution and growth decisions, and what specific action moves each theme up a level.
The framework is ready to use in Datamensio. It adapts to the size and scope of the institution, on a standalone or consolidated basis. AI adjusts the themes, questions and levels according to the CMMI method, or builds a version derived from your internal procedures and regulatory returns.
Reference standard: Prudential framework applicable to credit institutions and financial companies of the UMOA (Basel II/III, in force since 2018), BCEAO opinions and instructions relating to regulatory own funds
The themes assessed
Capital governance
Own funds management policy, roles of the board and risk committee, alignment with distribution policy, risk appetite expressed in capital terms.
Composition and eligibility of instruments
Classification into CET1, AT1 and Tier 2, verification of eligibility criteria, contractual loss absorption clauses, treatment of legacy instruments and monitoring of transitional arrangements.
Deductions and prudential filters
Intangible assets and goodwill, deferred tax assets, holdings in financial sector entities, provisioning shortfalls, carried forward losses, documented adjustments.
Data quality and calculation chain
Origin of accounting and management data, reconciliation with the trial balance, calculation tools, audit trails, version and parameter management.
Minimum requirements and buffers
CET1, Tier 1 and total own funds ratios, capital conservation buffer, countercyclical buffer, notified additional requirements, management margin above thresholds.
Prudential scope and consolidation
Determination of the consolidated supervision scope, treatment of minority interests, non consolidated holdings, consistency between standalone and consolidated basis.
Capital planning and projections
Multi year trajectory, alignment with the ICAAP and stress scenarios, capital conservation plan, planned triggers and corrective measures.
Controls and independent validation
First and second line controls over the calculation, review by internal audit, follow up on findings from statutory auditors and the supervisor.
Prudential reporting and disclosure
Production of regulatory returns, meeting BCEAO submission deadlines, consistency with Pillar III disclosures, information provided to the board and the market.
A short version of the framework is available for the online self-assessment.
Frequently asked questions
Does this assessment replace a Commission Bancaire inspection?
No. Datamensio measures the maturity of your own funds management framework and prepares you for scrutiny. Prudential supervision is the responsibility of the Commission Bancaire de l’UMOA and its General Secretariat. The assessment is used to identify and correct gaps beforehand.
How does this differ from a solvency ratio compliance audit?
An audit checks whether the ratio is met at a given date and concludes with a gap or compliance finding. The assessment positions the robustness of the chain producing that ratio on a progressive scale: data, controls, governance, projections. The two are complementary.
How long does the assessment take?
The short version can be completed in 20 to 30 minutes by a capital or regulatory reporting manager. The full version, run collaboratively with finance, risk and internal control, generally takes one to two weeks, with most of the time spent gathering supporting evidence.
Can the framework be adapted to our institution?
Yes. Themes, questions and levels can all be modified, and you can add your own internal requirements or those of a parent group. AI can also build a version derived from your procedures and regulatory returns. The framework belongs to you.
Can several subsidiaries of the same group be compared?
Yes. Each entity completes the same assessment and scores can be compared by theme, across business units and over time. A cross group roadmap consolidates action plans from different subsidiaries without duplicating shared workstreams.
How does this assessment relate to the ICAAP?
The ICAAP asks whether capital is adequate to the risks actually incurred, this assessment asks about the quality and control of the own funds themselves. The two feed into each other: a reliable calculation chain is a precondition for a credible ICAAP. Both frameworks come together in a shared roadmap.
Where is the data hosted?
In France, with OVH, backed up at Scaleway. No transfer outside the European Union. The AI models used can be selected, including from European providers.