Regulatory Alerts2000-03-21
COBAC Regulation R-93/11 on Credit Institutions' Equity Participations in Enterprises
The Central African Banking Commission issued Regulation R-93/11 to establish quantitative limits on equity participations held by supervised credit institutions in Central African enterprises. The regulation mandates that individual holdings must not exceed 15% of an institution's net equity, while the aggregate portfolio is capped at 75%, progressively reduced to 45% from January 1996, with specific exemptions for intra-sector holdings, operational extensions, and third-party managed securities. Institutions failing to meet these thresholds at the regulation's effective date must apply for temporary exemptions, and any unexempted excess is directly deducted from regulatory capital under COBAC R-93/02.
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