businessincameroon.com

The guaranteed minimum banking service (GMBS) should have been effective in July, in accordance with the Cameroonian Government's decision of January 2011.

 Bénédict Belibi, Secretary General of APECCAM.

According to Ministry of Finance Decision N° 000005 of 13 January 2011 instituting the SBMG, «every credit institution is required to offer guaranteed minimum banking service, the minimum services provided to all customers free of charge, as defined in this decision ». The government measure which could have been effective as soon as it was published, was delayed six months at the banks' request, the Association of Credit Professionals of Cameroon (APECCAM) disclosed. The SBMG is a set services comprising about fifteen elements ranging from account opening to issuing monthly bank statements, issuing chequebooks, payment by cheque, issuing passbooks, henceforth provided without deducting bank charges.

According to the government, the measure is meant to provide users with facilities to undertake bank transactions without difficulty, by simplifying the - sometimes expensive -procedures which cause discouragement among users. The purpose is to encourage Cameroonians to secure their savings by proposing a quality service at lower cost. The rate of use of the banking system which is currently estimated at about 7% is expected to increase sharply in the long term. In view of the fact that the application of this decision should lead to losses for banks, tough negotiations were held prior to its publication and the authority finally decided to set up an arbitration commission in charge of settling disputes whose rulings are binding to all. Chaired by the Ministry of Finance, this Commission, whose members include APECCAM, the Association of Consumers and the representative of the Bank of Central African States (BEAC), meets, as and when needed, for that purpose.

High lending rates
To ensure the Banks' compliance with this provision, article 7 stipulates that « The Bank of Central African States and the Central African Banking Commission (COBAC), within the framework of its respective missions, and independently ......the Ministry of Finance, are competent and authorized to look for and ascertain any violation in the application of this provision instituting the guaranteed minimum banking service ». This new provision gives concrete expression to one of the strong resolutions adopted at the Ministry of Finance Forum held in January 2009, where it was decided that « banks [would] no longer deduct charges from accounts payable ». It was even recommended to do away with bank charges. In all events, APECCAM disagrees with the belief that banking services are expensive in Cameroon. Its Secretary General, Bénédict Belibi, explained that « the credit rates used in Cameroon are the result of the business climate marked by a very high proportion of bad loans because people do not refund their loans ». In his view, the lending rates may vary between 5.5 and 7.5% for major businesses and creditworthy individuals, and between 12 and 15% for SMEs and people barely known by the bank.
With about fifteen banks operating in Cameroon, users more and more have the possibility to choose the bank that suits them for various services, and now expect to have the best services. Despite this extensive banking presence, access to credit is still a challenge, particularly for SMEs and individuals, while interest rates continue to be really high.
Achille Mbog Pibasso, Douala

Elements included in the guaranteed minimum banking service :
1– Opening bank accounts
2– Issuing particulars of customers' bank account
3– Issuing chequebooks
4– Providing, at the counter, cash withdrawal forms on behalf of the account holder
5– Issuing passbooks
6– Credit card payment to businesses in Cameroon
7– Accessing the account on the spot
8– Issuing proof that the customer does not owe the bank any money
9– Payment by cheque
10– Cash deposit in branches of the same bank
11– Withdrawing banknotes in automatic teller machines of the card holder's bank
12– Change of address
13– Issuing monthly bank statements
Source : Ministry of Finance