COMMISSION BANCAIRE

DE
L'AFRIQUE CENTRALE

---

COBAC REGULATION R-93/13 ON CREDIT INSTITUTIONS' COMMITMENTS IN FAVOR OF THEIR SHAREHOLDERS OR PARTNERS, DIRECTORS, EXECUTIVES AND STAFF (Amended by Regulation R-2001/05)

---

The Central African Monetary and Banking Commission,

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

Having regard to Article 9, paragraph 1 of the Annex to the Convention of 16 October 1990;

Having regard to the Convention of 17 January 1992 harmonizing banking regulation in the States of Central Africa;

Having regard to paragraph 4 of Article 32 of the Annex to the Convention of 17 January 1992;

Having regard to COBAC Regulation R-93/02.

---

DECIDES:

Article 1 - Commitments by credit institutions in favor of their shareholders or partners, directors, executives and staff are subject to the conditions set out below.

For the purposes of this Regulation, commitments are considered to be cash credits and guarantees granted by signature.

---

Commitments in favor of the State, of institutions themselves subject to regulation, and of institutions approved abroad are not subject to the provisions of this Regulation.

Article 2 - Any commitment in favor of a shareholder or partner, director and executive must be submitted to the Board of Directors for approval and brought to the attention of the statutory auditors.

Article 3 - Any person requesting a credit or guarantee may not be directly or indirectly involved in the risk assessment process and, a fortiori, in the decision to grant such credit or guarantee.

Article 4 - The total exposure of commitments calculated in accordance with Articles 3 and 4 of COBAC Regulation R-2001/02 on risk coverage, and borne directly or indirectly by a regulated institution in favor of its shareholders or partners, directors, executives and staff, shall not exceed 15% of the institution's net equity as defined by COBAC Regulation R-93/02.

Article 5 - When they exceed 5% of net equity as defined by COBAC Regulation R-93/02, commitments borne directly or indirectly by a regulated institution in favor of a shareholder or partner holding at least 10% of voting rights, one of its directors or executives approved under Title II of the Annex to the Convention of 17 January 1992, or one of its employees, are deducted from the internal liabilities taken into account for representing the minimum capital under COBAC Regulation R-93/10 and from the net equity amount determined in accordance with the aforementioned COBAC Regulation R-93/02.

Article 6 - The indirect commitments referred to in Articles 4 and 5 are those borne by legal or natural persons over which a shareholder, partner, director or executive of the institution exercises tangible influence as defined by COBAC Regulation R-93/11.

Article 7 - At the prescribed dates for risk centralization declarations, credit institutions communicate to the General Secretariat of the Monetary and Banking Commission, in the forms established by it, the individual list and the individual exposure of the beneficiaries referred to in Article 1.

The deliberative body, as defined in Article 1 of COBAC Regulation R-93/08, as well as the statutory auditor(s) of the regulated institutions are also informed of such operations.

---

Article 8 - This Regulation, which takes effect as of the date of signature, shall be notified by the General Secretariat of the Monetary and Banking Commission to the Ministers responsible for Finance and Credit and to all credit institutions approved in the States of Central Africa, as well as to professional associations formed between institutions.

Article 9 - The Secretary General of the Monetary and Banking Commission is charged with the execution of this Regulation.

Done at Yaoundé, on 7 MAY 2001

For the Monetary and Banking Commission,
The President,

Jean-Félix MAMALEPOT