DRC's central bank cuts the reserve ratio for banks to boost access to credit

Jul 18, 2014

The reserve requirement ratio for commercial banks set up by the Central Bank of Congo (BCC) went from three to zero per cent for short term deposits and from seven to five percent for long term deposits, the governor of the BCC has announced.

The reserve requirement ratio for commercial banks set up by the Central Bank of Congo (BCC) went from three to zero per cent for short
term
deposits
and from seven to five percent for long
term
deposits, the governor of the BCC has announced.

"The objective of this initiative is to support the activities of credit to maintain the growth momentum. What we must remember is that difficulties to access credit are a major obstacle to the internal consolidation of our growth" said Deogracias Mutombo, cited by Radio Okapi.

The volume of credit in DRC is currently at $1.8 billion (€1.3 billion), while the sole purpose of financing basic infrastructure needs is evaluated at approximately $10 billon, according to figures from the BCC.

The governor added that the second objective of this initiative is to support the process of moving away from the dollar, because the removal of the mandatory reserve deposit in Congolese Francs will promote that currency in the long term, said Déogratias Mutombo.ADNFCR-2976-ID-801736130-ADNFCR