COBAC Chairman made the declaration during a seminar to review regulations relating to financial institutions in difficulties.
“Banking business is growing steadily, banks make a significant surplus in deposit, permanent capital surplus which are largely fixed assets and cash is comfortable, actual situation of the 51 main banks in activity in the Economic and Monetary Community of Central African States- CEMAC is good and most of the financial institutions apply the minimum capital norm that was fixed at FCFA 10 billion for standard banks and FCFA two billion for microfinance institutions.” Lucas Abaga Nchama, Chairman of the Central African Banking Commission-COBAC and Governor of the Bank of Central African States-BEAC pronounced the positive statements during a seminar to discuss regulations relative in tackling financial houses in difficulties in Douala on May 22, 2015.
However, the COBAC Chairman revealed during the meeting that brought together participants from all the countries in the Sub Region that COBAC’s regulatory framework over the years was insufficient to effectively address problems of banks and microfinance institutions reason why the new crises resolution framework, 1214CEMACUMACCOBACCM was put in place to ensure efficient supervision given the ugly consequences that can occur should a financial institution go bankrupt.
The new legal framework that will ensure an effective banking supervision system and stability in the banking sector, will better anticipate crisis and contain the effects, facilitate the restructuring and consolidation operation and maximise the survival chances of financial institutions in difficulties. The Representative of the West African Monetary Union presented measures put in place to tackle the problems of financial institutions in his Sub Region and as well explained the measures put in place to protect savings and the compensation of clients in case of bankruptcy.
COBAC Secretary General, Halilou Yerima Boubakary, presented the limits of the legal framework that existed before the adoption of the new regulation, then the various stages of stakeholders’ consultation, the pillars of the reform and the areas covered by the regulation while laying emphasis on measures put in place to punish financial institutions that go against banking regulations.
Source : Cameroon Tribune