Regulatory Alerts2011-12-02
COBAC Regulation R-2009/01 Fixing Minimum Share Capital for Credit Institutions
The Central African Monetary Commission (COBAC) issued Regulation R-2009/01 to mandate minimum share capital requirements of 10 billion FCFA for banking institutions and 1 billion FCFA for financial institutions operating within the CEMAC region. The regulation establishes a five-year transitional period starting June 1, 2009, requiring banks to progressively increase their capital to 5 billion FCFA by June 2010 and 10 billion FCFA by June 2014, while financial institutions must scale up to 1 billion FCFA and 2 billion FCFA over the same timeline. It repeals all conflicting national provisions, specifies that implementation details will be set by instruction, and requires notification to currency and credit ministers, all subject institutions, professional associations, and publication across the official gazettes of member states.