Cameroon's government clamps down on clandestine bank branches
Cameroon's Finance Minister Alamine Ousmane Mey has given financial institutions until September 30th to comply with regulations.Cameroon's Finance Minister Alamine Ousmane Mey
financial institutions until September 30th to comply with regulations.
According to figures from the National Credit Council (CNC), the banking and microfinance system has gained 70 new branches from 31 May 2012 to 31 May 2013, and some operate illegally.
"Some banks proceed to opening branches and offices without prior consent from the Monetary Authority," said the minister, quoted by Cameroon Tribune.
The targeted institutions must send - before September 30th
- a regularization demand for all relevant agencies to the CNC, as well as the full list of their branches operating in the country. Failure to comply would expose them to sanctions.
In July 2013, Alamine Ousmane Mey took the decision to suspend 34 microfinance banks, Cameroon Journal reports.
Besides, the CNC gave a positive picture of the development of the country's financial system, revealing that a 10.5 percent increase on deposits and a 6.7 percent increase on granted loans
witnessed between 2012 and 2013.