COMMISSION BANCAIRE OF CENTRAL AFRICA

COBAC REGULATION R-2010/03 AMENDING COBAC REGULATION R-2003/03 ON THE ACCOUNTING AND PRUDENTIAL TREATMENT OF SECURITIES OPERATIONS CARRIED OUT BY CREDIT INSTITUTIONS

The Central African Banking Commission;

Having regard to the Convention of 16 October 1990 establishing a Central African Banking Commission;

Having regard to the Convention of 17 January 1992 on the harmonization of banking regulation in the Central African States;

Having regard to COBAC Regulation R-2003/03 on the accounting and prudential treatment of securities operations carried out by credit institutions;

Having regard to the minutes of the meeting of the Banking Commission held in Douala on 30 June 2009;

HAS DECIDED AS FOLLOWS:

Article 1. Article 24 of Regulation R-2003/03 on the accounting and prudential treatment of securities operations carried out by credit institutions is amended as follows:

*« Article 24 (new). -
With the exception of securities that are deducted from the institution's own funds, pursuant to Article 6 of COBAC Regulation R-93/02 on net own funds as amended by COBAC Regulation R-2001/01, securities held by credit institutions are, regardless of their classification, taken into account for the determination:

• credit risks for the calculation of the risk coverage ratio, according to the weighting rates set by COBAC Regulation R-2001/02 on risk coverage for credit institutions;

2

• risks retained for verifying compliance with risk diversification standards, according to the weighting rates set by COBAC Regulation R-2001/03 on risk diversification for credit institutions;
• commitments in favor of shareholders or partners, directors, senior management and staff, according to the procedures set by COBAC Regulation R-93/13 on commitments of credit institutions in favor of their shareholders or partners, directors, senior management and staff as amended by COBAC Regulation R-2001/05;
• the denominator of the long-term transformation ratio, according to the procedures set by COBAC Regulation R-93/07 on transformation carried out by credit institutions.

However, public securities classified as trading securities in the asset items of credit institutions are excluded from the determination of risk coverage and diversification standards, for a period of six (06) months from their recording in the accounting records of said institutions, corresponding to the maximum holding period for these securities in this category. »*

Article 2. The Secretary General of the Banking Commission is responsible for the implementation of this Regulation, which enters into force from its date of signature.

Done in Yaoundé, on 22 JAN 2010

For the Banking Commission,
The President,

(Signature)

Lucas ABAGA NCHAMA