(Business in Cameroon) - Cemac Banks’ loan portfolio is significantly deteriorating, the Central Bank (Beac) said in its monetary policy issued late October 2018.

This situation, the report notes, is characterized by an increase by CFA133.5 billion (+9.2%) in the level of outstanding receivables, motivated by the strong surge by CFA115 billion (+12.54%) in bad debts while fixed receivables rose by CFA51.4 billion (+15.5%).

In addition, only 22 banks in the sub-region have sufficient net equity to meet all prudential standards based on this aggregate (compared to 17 the previous year, the same period).

“The prudential standards met by the largest number of institutions are those relating to the overall limit for risk division and risk coverage. The standard related to individual risk division limit is the one with the highest number of offending banks,” the Central Bank reveals.

As at 30 June 2018, CEMAC had 53 banks including 16 in Cameroon, 4 in Central African Republic, 11 in Congo, 8 in Gabon, 5 in Equatorial Guinea, and 9 in Chad.

Sylvain Andzongo