Regulatory Alerts2000-03-21
COBAC Regulation R-93/07 on Transformation by Credit Institutions
The Central African Banking Commission issued Regulation R-93/07 to mandate that credit institutions maintain a long-term transformation coefficient of at least 50%, calculated as the ratio between assets and liabilities maturing beyond five years and corresponding resources. The regulation specifies detailed components for the numerator, including net equity and term borrowings, and the denominator, covering tangible assets, long-term receivables, investment securities, and doubtful claims. Non-compliant institutions face injunctions, disciplinary sanctions under the 1990 Convention, or temporary derogations granted by the Commission.
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