COBAC Regulation R-2018/06 on the Composition of Banking and Non-Banking Compartments for Credit and Microfinance Institutions in Liquidation

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COMMISSION BANCAIRE OF THE CENTRAL AFRICA REGLEMENT COBAC R-2018/06 ON THE FIXING OF THE COMPOSITION OF THE BANKING AND NON-BANKING COMPARTMENTS OF THE ASSETS OF CREDIT AND MICROFINANCE INSTITUTIONS IN LIQUIDATION

The Central African Banking Commission, Having regard to the Convention of 16 October 1990 establishing a Central African Banking Commission and its Annex; Having regard to the Convention of 17 January 1992 on the harmonization of banking regulation in the States of Central Africa and its Annex; Having regard to Regulation No. 02/14/CEMAC/UMAC/COBAC/CM of 25 April 2014 on the treatment of credit institutions in difficulty in CEMAC; Having regard to Regulation No. 02/15/CEMAC/UMAC/COBAC of 27 March 2015 amending and supplementing certain provisions relating to the exercise of banking activities in CEMAC; Having regard to Regulation No. 01/17/CEMAC/UMAC/COBAC of 27 September 2017 on the conditions for exercising and supervising microfinance activities in CEMAC; Having regard to COBAC Regulation R-98/01 of 15 February 1998 on the accounting plan for credit institutions and its subsequent texts; Having regard to COBAC Regulation R-2003/01 of 15 January 2003 on the organization of accounting for credit institutions; Having regard to COBAC EMF-2010/01 of 1 April 2010 on the accounting plan for microfinance institutions; Having regard to COBAC EMF-2010/02 of 1 April 2010 on the organization of accounting for microfinance institutions; Having regard to the OHADA Uniform Act relating to commercial company law and economic interest groupings; Having regard to the OHADA Uniform Act relating to cooperative company law;

Having regard to the OHADA Uniform Act on the organization of collective proceedings for debt clearance; Meeting in ordinary session on 16 January 2018 in Libreville; DECIDES:

Article 1 - This regulation sets out the respective composition of the banking and non-banking compartments of the assets of credit and microfinance institutions as provided for in Article 96 of Regulation No. 02/14/CEMAC/UMAC/COBAC/CM of 25 April 2014.

Article 2 - In accordance with Article 96 of Regulation No. 02/14/CEMAC/UMAC/COBAC/CM of 25 April 2014, a. the banking compartment includes:

• for credit institutions, assets and liabilities generated by banking operations and related operations as defined in Articles 4 and 8 of the Annex to the Convention of 17 January 1992 on the harmonization of banking regulation in the States of Central Africa;
• for microfinance institutions, assets and liabilities generated by authorized operations and related operations as defined in Articles 19 to 25 of Regulation No. 01/17/CEMAC/UMAC/COBAC of 27 September 2017 on the conditions for exercising and supervising microfinance activities in CEMAC; b. the non-banking compartment comprises all assets and liabilities of the credit or microfinance institution not belonging to the banking compartment. These include in particular: i) debts, obligations and commitments not generated by banking activities; ii) assets allocated to the operation of the credit or microfinance institution.

Article 3 - The banking compartment includes on the asset side: a) Operations relating to immobilized securities, involving the following main or sub-accounts of class 2 of the accounting plan for credit institutions and the accounting plan for microfinance institutions: • 213 "Land allocated to hire-purchase or lease with purchase option"; • 214 "Land acquired by auction"; • 224 "Buildings acquired by auction"; • 223 "Buildings allocated to hire-purchase or lease with purchase option"; • 26 "Participation securities and other immobilized securities" or "Participation securities and other financial immobilizations"; • 27 "Loans and securities subject to mandatory subscription" or "Public loans and securities and similar". b) Credit distribution operations involving the following main accounts of class 3 of the accounting plan for credit institutions and the accounting plan for microfinance institutions: • 30 "Long-term credits"; • 31 "Medium-term credits"; • 32 "Short-term credits"; • 34 "Non-performing loans" of credit institutions or 33 "non-performing loans" of microfinance institutions; • 37 "Overdrafts and current accounts" (debit balances); • 38 "Other customer accounts" (debit balances). c) Regarding the provision of services to customers and payment management, collection operations, undelivered entries between different operating headquarters, regularization accounts, and third-party accounts, involving the following main accounts of class 4 of the accounting plan for credit institutions and the accounting plan for microfinance institutions: • 41 "Checks and bills for collection" or "Payment instruments for collection" (accounts with debit balances); d) Operations between branches and agencies of the institution, as well as those involving several services of the same agency, involving the following main accounts of class 4 of the accounting plan for credit institutions and the accounting plan for microfinance institutions: • 45 "Inter-branch accounts" (credit balances). e) Treasury operations relating to investment securities, cash and valuables on hand, assets and liabilities contracted with the Issuing Institute, involving the following main accounts of class 5 of the accounting plan for credit institutions and the accounting plan for microfinance institutions: • 51 "Investment and transaction securities"; • 52 "Money market"; • 53 "Other values received or given on repurchase"; • 54 "Loans, borrowings and term accounts of correspondents"; • 55 "Day-to-day loans and borrowings of correspondents"; • 56 "Current accounts of correspondents"; • 57 "Cash"; • 58 "Non-performing loans on correspondents".

Article 4 - The banking compartment includes on the liability side: f) Regarding safe deposit box rentals, operations relating to permanent capital, involving the following sub-accounts of class 1 of the accounting plan for credit institutions and the accounting plan for microfinance institutions: • 188 "Deposits and guarantees received" by credit institutions or 187 "Non-commercial deposits and guarantees received" by microfinance institutions, relating to operations covered in Article 2-a of this regulation; • 191 "Provisions for general banking risks"; g) Regarding the reception of public funds, savings collection operations, involving the following main accounts of class 3 of the accounting plan for credit institutions and the accounting plan for microfinance institutions: • 35 "Special regime deposit accounts"; • 36 "Term deposit accounts"; • 37 "Overdrafts and credit current accounts"; • 38 "Other customer accounts" (credit balances). h) Regarding the provision of services to customers and payment management, collection operations, undelivered entries between different operating headquarters, regularization accounts, and third-party accounts, involving the following main account of class 4 of the accounting plan for credit institutions and the accounting plan for microfinance institutions: • 41 "Checks and bills for collection" or "Payment instruments for collection" (accounts with credit balances). i) Operations between branches and agencies of the institution, as well as those involving several services of the same agency, involving the following main accounts of class 4 of the accounting plan for credit institutions and the accounting plan for microfinance institutions: • 45 "Inter-branch accounts" (credit balances). j) Regarding related operations covered in Article 8 of the Annex to the Convention of 17 January 1992 on the harmonization of banking regulation in the States of Central Africa, operations relating to investment securities, cash and valuables on hand, assets and liabilities contracted with the Issuing Institute, involving the following main accounts of class 5 of the accounting plan for credit institutions and the accounting plan for microfinance institutions: • 52 "Money market"; • 53 "Other values received or given on repurchase"; • 54 "Loans, borrowings and term accounts of correspondents"; • 55 "Day-to-day loans and borrowings of correspondents"; • 56 "Current accounts of correspondents" (credit balances).

Article 5 - The non-banking compartment includes on the asset side: a) Regarding immobilized securities: • 20 "Immobilized intangible expenses and values"; • 21 "Land", except those covered in Article 3; • 22 "Other tangible fixed assets in service", except those covered in Article 3; • 23 "Other tangible fixed assets under construction"; • 24 "Advances and deposits on orders for fixed assets"; • 25 "Deposits and guarantees" or "Non-commercial deposits and guarantees paid". b) Regarding collection operations, undelivered entries between different operating headquarters, regularization accounts, and third-party accounts involving the following main accounts of class 4 of the accounting plan for credit institutions and the accounting plan for microfinance institutions: • 40 "Suppliers" (debit balance); • 42 "Personnel" (debit balance); • 43 "State and international organizations" or "State, public authorities and international organizations"; • 44 "Shareholders" or "Companies and shareholders" (debit balance); • 46 "Other debtors and creditors" (debit balance); • 47 "Regularization accounts" (debit balance); • 48 "Other non-performing claims".

Article 6 - The non-banking compartment includes on the liability side: a) Regarding collection operations, undelivered entries relating to permanent capital involving the following main accounts of the accounting plan for credit institutions and the accounting plan for microfinance institutions: 10 "Capital and allocations" or "Capital, partnership shares and allocations"; 11 "Capital-related premiums" or 104 "Capital-related premiums and partnership shares"; 12 or 11 "Reserves"; 13 or 12 "Carried forward profits/losses"; 14 "Special provisions and regulated reserves"; 15 "Investment grants"; 16 "Financing and guarantee funds"; 17 "Bond borrowings"; 18 "Other permanent resources", except those covered in Article 4; 19 "Provisions for risks and charges", except those covered in Article 4 of this regulation; 40 "Suppliers" (credit balance); 42 "Personnel" (credit balance); 43 "State and international organizations" or "State, public authorities and international organizations" (credit balance); 44 "Shareholders" or "Companies and shareholders" (credit balance); 46 "Other debtors and creditors" (credit balance); 47 "Regularization accounts" (credit balance).

Article 7 - The banking compartment includes off-balance sheet operations relating to forward foreign exchange, forward gold/precious metals/coins operations, and the issuance of guarantees in favor of other credit institutions, involving all main accounts of class 9 of the accounting plan for credit institutions and the accounting plan for microfinance institutions recording commitment by signature, namely: • 90 "Commitments given on behalf of correspondents" or "Commitments given to local correspondents"; • 91 "Commitments received from correspondents" or "Commitments received from local correspondents"; • 92 "Commitments given on behalf of customers" or "Commitments in favor of customers"; • 93 "Commitments received from customers"; • 94 "Hire-purchase commitments and similar operations"; • 95 "Securities and values allocated as collateral for money market operations"; • 96 "Commitments received from the State and public bodies"; • 97 "Foreign currency operations"; • 98 "Doubtful commitments by signature".

Article 8 - The non-banking compartment does not include any off-balance sheet elements.

Article 9 - In the context of the liquidation of a supervised institution, the Banking Commission may decide on the classification or reclassification of one or more elements of the liquidated institution's assets into either the banking or non-banking compartment.

Article 10 - This regulation repeals all prior provisions contrary to it.

Article 11 - This regulation enters into force as of 1 April 2018.

Article 12 - The Secretary General of COBAC is responsible for the implementation of this regulation and its notification to national monetary authorities, National Directorates of the Bank of Central African States, professional associations of credit institutions, and professional associations of microfinance institutions in the Economic and Monetary Community of Central Africa.

Thus decided and made in Libreville on 16 January 2018, in the presence of: Mr. ABBAS MAHAMAT TOLLI, President; Ms. TOMBIDAM Denise Ingrid and EKO EKO née YECKE ENDALE Berthe, Mr. Louis ALEKA-RYBERT, BECHIR DAYE, Jean-Paul CAILLOT, Pascal FOURCAUT, Silvestre MANSIELE BIKENE, Armel Fridelin MBOULOUKOUE, Salomon Francis MEKE, Régis MOUKOUTOU and Chérubin YERADA, members. For the Banking Commission, A T TOLLI