New loans from Cameroon's banks up 12 per cent
A report shows that new loans significantly increased in the past months.Cameroon's banks are increasingly committed to financing the economy, the Council of Credit has said.
Its President, Alamine Ousmane Mey, revealed that between May 31, 2014 and May 31, 2015, new bank loans increased by 12.9 per cent.
A source at the Bank of Central African States (BEAC) quoted by Cameroon Tribune said this increase in loans could be attributed to the increase in savings by local banks, which increased by 8.1 per cent over the period after the BEAC slashed interest rates on local banks to 2.45 per cent, from 2.95 per cent.
Banking business is growing steadily in Cameroon and other member countries of the Economic and Monetary Community of Central African States (CEMAC), according to Lucas Abaga Nchama, Chairman of the Central African Banking Commission (COBAC).
"Banks make a significant surplus in deposit, permanent capital surplus which are largely fixed assets and cash is comfortable," he said.
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.