Regulatory Alerts2018-03-05
COBAC Regulation R-2018/01 on the Classification, Accounting and Provisioning of Credit Institution Receivables
The Central African Monetary Commission (COBAC) issued Regulation R-2018/01 to standardize the classification, accounting, and provisioning of credit institution receivables across CEMAC member states. The regulation mandates that institutions categorize portfolio holdings into healthy, sensitive, immobilized, unpaid, doubtful, and irrecoverable receivables based on repayment capacity, guarantee coverage, and maturity status. It establishes strict provisioning rates (minimum 0.5% annual allocation for general provisions and tiered specific rates up to 100%), mandates contagion effects for doubtful classifications, and sets detailed reclassification criteria for restructured or matured receivables to ensure robust risk coverage.
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