COBAC Regulation R-93/12 on Activities Other Than Those in Articles 4 to 7 of the 1992 Convention Annex

COBAC REGULATION R-93/12 ON THE EXERCISE OF ACTIVITIES OTHER THAN THOSE COVERED IN ARTICLES 4 TO 7 OF THE ANNEX TO THE CONVENTION OF 17 JANUARY 1992

The Central African Banking Commission,
Having regard to the Convention of 16 October 1990 establishing a Central African Banking Commission; Having regard to Article 9 of the annex to the Convention of 16 October 1990; Having regard to the Convention of 17 January 1992 on the harmonization of banking regulation in the States of Central Africa, Having regard to Article 9 of the annex to the Convention of 17 January 1992; Having regard to COBAC Regulation R-93/10 on the shareholdings of credit institutions in companies; DECIDES:

Article 1 Credit institutions may, under the conditions set out in this regulation, exercise activities other than:

• banking operations defined in Articles 4 to 7 of the annex to the aforementioned Convention of 17 January 1992;
• ancillary operations related to their business covered in Article 8 of said annex; and
• shareholdings in companies governed by COBAC Regulation R-93/10.

Article 2 Credit institutions are authorized to:

• exercise any activity as agent, broker, or commissioner on behalf of subsidiaries or in extension of other authorized activities;
• manage real estate assets owned and not allocated to their operations;
• provide services that constitute the ancillary use of assets primarily allocated to banking operations;
• offer clients services that, while not ancillary to their business, constitute an extension of banking operations.
  These activities must remain compatible with the requirements of the banking profession, particularly the preservation of the institution's reputation and the protection of depositors' interests. The concerned institutions must exercise the aforementioned activities in accordance with applicable regulations and the conditions of their authorization.

Article 3 The annual amount of all revenue derived from activities whose exercise is authorized by Article 2 must not exceed 10% of the net banking income, defined as the difference between revenue and banking expenses.
These revenue amounts must be recorded in accounting under specific headings.

Article 4 Credit institutions that do not comply, at the date of notification of this regulation, with the limits set out in Article 3 above and cannot comply before 1 January 1994 are required to submit a temporary exemption request, supported by all relevant assessment elements, to the Banking Commission.

Article 5 This regulation, which takes effect from the date of signature, will be notified by the Secretary General of the Banking Commission to the Ministers in charge of Finance and Credit, to all authorized credit institutions in the States of Central Africa, and to professional associations formed among these institutions.

Article 6 The Secretary General of the Banking Commission is responsible for implementing this regulation.

Done at Yaoundé, 19 April 1993
For the Banking Commission,
The President,
Jean-Félix MAMALEPOT