Regulatory Alerts2018-03-05
COBAC Regulation R-2018/03 on the Identification and Supervision of Systemically Important Institutions in CEMAC
The Central African Banking Commission (COBAC) issued Regulation R-2018/03 to establish identification criteria and supervision procedures for systemically important institutions within the Central African Economic and Monetary Community (CEMAC). The regulation mandates that these institutions maintain additional capital conservation buffers ranging from 1% to 2.5% of net risk-weighted assets, depending on their designated systemic importance level, and comply with enhanced liquidity ratios and specific reporting requirements. Furthermore, it requires affected institutions to develop and implement emergency recovery plans within three months of regulatory breaches, subject to COBAC's approval and potential escalation to special restructuring procedures if failures persist.