Regulatory Alerts2018-03-05
COBAC Regulation R-2018/04 on Procedures for Subsidiaries Under Single Authorization to Obtain Credit Institution Status After Parent Withdrawal
The Central African Banking Commission (COBAC) issued Regulation R-2018/04 to establish the procedures for subsidiaries operating under a single authorization regime to obtain independent credit institution status following their parent company's withdrawal of authorization. The regulation mandates that eligible subsidiaries submit an application to the national monetary authority within six months of the parent's authorization withdrawal, subject to prior COBAC approval for share transfers and capital restructuring. Upon granting or refusing the application, the monetary authority automatically withdraws the subsidiary's establishment authorization, with COBAC appointing a banking liquidator to oversee liquidation if authorization is denied.