New measures aim to boost CEMAC's lending market

Feb 09, 2011

The Economic and Monetary Community of Central Africa (CEMAC) has introduced new measures to boost lending for businesses in the region.

Lucas Abaga Nchama, President of the Central African Banking Commission, mentioned during a conference for Central and West African banks supervisors that a paradox exists between the reduced economic activity due to the lack of lending and the abundance of liquid assets.

"We have decided to significantly raise the level of minimum capital required in order to help lending institutions in the CEMAC to better cover their risks," he was quoted by Les Afriques newspaper as saying

This level has been raised to €15.2 million for banks and €3 million for financial institutions.

The Central Bank has also introduced new measures to increase competition between banks, a move that is expected to lower lending costs.

Rivalries between firms are bound to increase, with around 40 financial institutions now operating in the area and the recent arrival of international groups such as Ecobank and Attijariwafa Bank.