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Yaoundé - 10 December 2016 -
Finance

CEMAC zone: Despite a difficult situation, the “risks and weaknesses on the financial system are under control”

CEMAC zone: Despite a difficult situation, the “risks and weaknesses on the financial system are under control”
  • Comments   -   Wednesday, 30 November 2016 19:18

(Business in Cameroon) - The 3rd session of the Central Africa Financial Stability Committee (CSF-AC) was closed on 29 November 2016 in Yaoundé, the Cameroonian capital, on an optimistic note on the state of the financial sector in the six CEMAC countries, which are Cameroon, Congo, Gabon, Equatorial Guinea, Chad and the Central African Republic.

Indeed, even though the persistence of a “difficult economic environment which is negatively affecting the macro-economic performances of the CEMAC States and the players in the sub-regional financial sector” was highlighted, CSF-AC reassured that “the risks and weaknesses affecting the financial sector” in this community are “on the whole under control”.

These conclusions, combined with a call for “constant vigilance” to the players in the CEMAC financial community, restore confidence on the limited consequences which could be induced by some indicators recently revealed in Douala, during a meeting between the management of COBAC, the regulatory body in the banking sector, and the management of banks operating in the CEMAC zone.

During this meeting held on 21 October 2016 in the Cameroonian capital, COBAC among other things revealed that outstanding receivables for CEMAC banks had increased by 41.6% as at end July; only 19 out of 52 banks had enough equity to enable them to meet prudential standards; while 16 out of 52 banks had registered losses during the first half of 2016.

All rather mediocre statistics, which could have pushed towards a certain pessimism on the state of the sub-regional financial sector. But, for the moment, these indicators have no repercussions on the stability of the financial sector of CEMAC, according to the Central Africa Financial Stability Committee, headed by the Governor of the Central Bank, Lucas Abaga Nchama.

Brice R. Mbodiam

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