Regulatory Alerts2016-08-29
COBAC Instruction I-2016/01 on Establishing the Conservation Buffer for Credit Institutions
The Central African Banking Commission (COBAC) has issued Instruction I-2016/01 to establish the procedural framework for implementing a mandatory own funds conservation buffer under Regulation R-2016/03. The instruction mandates a phased implementation schedule, requiring credit institutions to progressively increase their conservation buffer from 0.5% on 1 January 2017 to 1.5% on 1 January 2018, and finally to 2.5% on 1 January 2019. It enters into force immediately upon publication and directs the COBAC Secretary General to notify all relevant national monetary authorities, BEAC directorates, financial holding companies, and statutory auditors to ensure compliance across the Economic and Monetary Community of Central Africa.
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