The work of the thirteenth annual consultation meeting of the Central African Banking Commission (COBAC) with finance professionals opened on July 18 in the Congolese capital. Participants will attempt to formulate possible solutions to strengthen the banking system in the sub-region.
The money supply in circulation within the Economic and Monetary Community of Central Africa (CEMAC) is expected to increase this year by 13.5% compared to 9% in 2023. The activity and performance indicators of the banking system in the sub-region show an increase, with an overall account estimated at nearly 24,000 billion FCFA. The same trend is observed in the net banking income of all active banks, which will also increase by 13%, while net income increased by 116.1%.
The credit portfolio improved, with a decrease in non-performing loans of 81 billion FCFA, or -4% compared to their level a year ago. Non-performing loans stood at 1,981 billion FCFA, representing 16.47% of gross credits, compared to 19% a year earlier. ” The level nevertheless remains worrying, in view of the 5% standard, ” said the governor of the Bank of Central African States (BEAC), Yvon Sana Bangui.
This high level of indicators should be put into perspective, according to the governor of the BEAC, due to the transaction title component and certain foreign currency accounts whose liquidity is often not effective. ” Despite the banks’ displayed performances, we observe the recurrence of infractions with regard to the regulations in force. The controls carried out by the general secretariat of Cobac have highlighted the preference for profitability over compliance requirements ,” recalled Yvon Sana Bangui, who is also president of COBAC.
The issue of the evolution of non-performing debts in the CEMAC zone and the proposals for appropriate prudential measures, the problem of overexposure of banks in the sub-region, as well as the challenges of cybersecurity in the financial sector in the CEMAC zone, constitute the three main subjects of consultation between Cobac and the heads of financial and banking institutions. ” We are awaiting the conclusions of these discussions in order to take concrete action ,” declared Minister Ludovic Ngatsé, at the opening of the proceedings.
Let us recall that of the 53 banks in operation, 26 of them have sufficient net equity to comply with all financial regulations. The BEAC Governor promised firmness and targeted controls against unscrupulous financial and banking institutions. The system for combating money laundering and the financing of terrorism should also be strengthened.
