CEMAC banking sector experiences "steady growth", says COBAC
A new legal framework was implemented that will ensure an effective banking supervision system.Banking business is growing steadily in the Economic and Monetary Community of Central African States (CEMAC), Lucas Abaga Nchama, Chairman of the Central African Banking Commission-(COBAC) said during a seminar in Douala on May 22nd.
"Banks make a significant surplus in deposit, permanent capital surplus which are largely fixed assets and cash is comfortable," he said, adding that most of the financial institutions apply the minimum capital norm that was fixed at CFAF10 billion (€15.2 million) for standard banks and CFAF2 billion for microfinance institutions, Cameroon Tribune reports.
He also announced that a new legal framework was implemented that will ensure an effective banking supervision system and stability in the banking sector. It will also better anticipate a crisis and contain the effects, facilitate the restructuring and consolidation operation and maximise the survival chances of financial institutions in difficulties.
While less than eight per cent of the CEMAC population has access to formal accounts, more
than 35 per cent of adults have saved money with formal and informal institutions, according to a report by the International Monetary Fund (IMF) on Financial Inclusion in the CEMAC published in October 2014.
The vast majority of loans are obtained through family and friends followed by private lenders. Less than three per cent of the population received a loan from a bank in the 12 months before mid-July 2014, "underscoring the marginal dimension of retail banking", the IMF said.