Regulatory Alerts2000-04-03
COBAC Regulation R-96/01 on the Credit Portfolio Structure of Credit Institutions
The Central African Monetary Commission (COBAC) issued Regulation R-96/01 to mandate that credit institutions maintain a minimum 35% credit portfolio structure ratio, progressively increasing to 45% by July 1998 and 55% by July 1999. The rule defines the numerator as BEAC-eligible treasury refinancing and irrevocable financial institution refinancing, while the denominator comprises long-, medium-, and short-term customer credits, net doubtful claims, and customer debit accounts. Non-compliant institutions face injunctions and disciplinary sanctions under the 1990 Convention, with COBAC retaining authority to grant temporary derogations and enforce monthly or quarterly reporting.
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