Regulatory Alerts2004-01-16
COBAC Regulation R-2003/03 on the Accounting and Prudential Treatment of Securities Operations by Credit Institutions
The Banking Commission of Central Africa (COBAC) Regulation R-2003/03 establishes comprehensive accounting and prudential treatment rules for securities operations carried out by credit institutions. It defines and categorizes securities into trading, available-for-sale, held-to-maturity, participating interests, and portfolio activity securities, detailing their recognition, valuation, reclassification, and disclosure requirements in financial statements. Furthermore, the regulation specifies how these securities are to be incorporated into the calculation of various prudential ratios, including credit risk, risk division, and fixed asset coverage, becoming effective on January 1, 2004.
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