Regulatory Alerts2018-03-05
COBAC Regulation R-2018/06 on the Composition of Banking and Non-Banking Compartments for Credit and Microfinance Institutions in Liquidation
The Central African Banking Commission (COBAC) issued Regulation R-2018/06 to define the precise composition of banking and non-banking asset compartments for credit and microfinance institutions undergoing liquidation. The regulation classifies specific balance sheet accounts across classes 1 through 5, plus off-balance sheet commitments under class 9, into either the banking compartment—covering core banking operations, credit distribution, customer funds, and treasury—or the non-banking compartment, which captures immobilized assets, permanent capital, suppliers, and state-related liabilities. By establishing these clear accounting boundaries and granting the Commission authority to reclassify assets during liquidation, the regulation ensures accurate asset segregation, repeals conflicting prior provisions, and takes effect on 1 April 2018.