CEMAC: Bank credit portfolio reveals 894 billion of receivables

The amount of overdue loans from the Economic Community of Central Africa States (CEMAC) by about 50 banking institutions was 894 billion Cfa francs (11.8%) on March 31, 2015.

These receivables, which become problematic when it is time for payment, increased approximately by 2% over the same period last year (696 billion FCfa, or 9.99% of the gross appropriations).

This information was revealed on July 3, 2015 in Douala, by Lucas Abaga Nchama, president of Cobac, also Governor of the Central Bank of the CEMAC member countries.

It was during the 7th session of the meeting between the president of Cobac and the directors of credit institutions in CEMAC. The was a platform to regulate the banking sector and to evaluate the banking system in the six CEMAC countries namely; Cameroon, Gabon, Congo, Chad the Central African Republic and Equatorial Guinea.

Although it is not alarming, according to Cobac, current degradation of portfolio credit by the banks of the CEMAC zone was one of the highlights of the discussion. Cobac took the opportunity during this meeting to make a presentation on "the implementation of Cobac regulation on classification, accounting and procurement of receivables from credit institutions" to bankers.

The president of the Cobac said, "The topic is very important in regards to certain questions posed by some institutions as well as some incorrect assessment and inadequate coverage of the credit risk by credit institutions.”

Lucas Abaga Nchama who assumed position on January 1 said, 'this new regulation lays down the framework of credit risk management which is the most important risk for credit institutions in the CEMAC zone. Taking into account this regulatory scheme as part of the policies and procedures put in place by the banks, it will be a factor in increasing the resilience of your establishments, as well as the banking system as a whole.”

“Moreover, despite overdue debts, the banking sector in the CEMAC zone remains solid and dynamic if we stick to these aggregates. Total aggregated balance sheets of the banks stood at 12 571 billion Cfa francs in late March. It rose to 8.62% from March 31, 2014,” he added.

Lucas said the collected deposits followed the same trend and amounted to 9 944 billion francs, or 79.10% of the balance sheet total which was increased by 6.5% in annual variation. he added that gross credits amounted to 7 528 billion Cfa francs. They rose by 8.07% as compared to their level in March 2014.

“The cash surplus stands at 3 575 billion Cfa francs (28.4% of the balance sheet total). An increase of 4.25 percent was recorded 12 months earlier,” revealed Lucas Abaga Nchama.