COBAC Instruction I-2016/01 on Establishing the Conservation Buffer for Credit Institutions

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COMMISSION BANCAIRE DE L’AFRIQUE CENTRALE

COBAC INSTRUCTION I-2016/01 defining the procedures for establishing the conservation buffer required under COBAC Regulation R-2016/03 on the net own funds of credit institutions

The President of the Central African Banking Commission,

Having regard to the Convention of 16 October 1990 establishing a Central African Banking Commission and its Annex;

Having regard to the Convention of 17 January 1992 on harmonizing banking regulation in the Central African States and its Annex;

Having regard to Article 31 of the Convention governing the Central African Monetary Union of 25 June 2008, revising that of 5 July 1996;

Having regard to Regulation No. 04/CEMAC/UMAC/CM of 2 October 2012 establishing the Central African Financial Stability Committee;

Having regard to Regulation No. 02/14/CEMAC/UMAC/COBAC/CM of 25 April 2014 on the treatment of distressed credit institutions in the Economic and Monetary Community of Central Africa;

Having regard to Regulation No. 01/15/CEMAC/UMAC/COBAC/CM of 27 March 2015 on the supervision of financial holding companies and cross-border surveillance;

Having regard to COBAC Regulation R-93/02 of 19 April 1993 on the net own funds of credit institutions, amended by COBAC Regulation R-2001/01 of 7 May 2001;

Having regard to COBAC Regulation R-2013/01 of 17 September 2013 supplementing COBAC Regulation R-93/02 of 19 April 1993 on the net own funds of credit institutions, amended by COBAC Regulation R-2001/01 of 7 May 2001;

Having regard to COBAC Regulation R-2014/01 of 21 March 2014 on the classification, accounting, and provisioning of credit institutions' claims;

Having regard to COBAC Regulation R-2016/03 of 8 March 2016 on the net own funds of credit institutions;

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DECIDES:

Article 1

This instruction defines the procedures for establishing the conservation buffer on own funds provided for in Article 25 of COBAC Regulation R-2016/03 on the net own funds of credit institutions.

Article 2

The own funds conservation buffer shall be required progressively, as follows:

• credit institutions must hold a conservation buffer of 0.5% as from 1 January 2017;
• credit institutions must hold a conservation buffer of 1.5% as from 1 January 2018;
• credit institutions must hold a conservation buffer of 2.5% as from 1 January 2019.

Article 3

This instruction shall enter into force on 1 January 2017.

Article 4

The COBAC Secretary General is responsible for implementing this instruction, which shall be notified to the national monetary authorities, the national directorates of the BEAC, the professional associations of credit institutions, credit institutions, financial holding companies subject to COBAC consolidated-basis supervision, and the statutory auditors of credit institutions in the Economic and Monetary Community of Central Africa.

Done and decided in Libreville on 22 June 2016.

For the Central African Banking Commission,

The President,

[Signature and seal]

Lucas ABAGA NCHAMA

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