Regulatory Alerts2018-09-21
COBAC Instruction I-2018/01 on the Methodology for Identifying Systemically Important Institutions in CEMAC
The Commission Bancaire of Central Africa (COBAC) issued Instruction I-2018/01 to establish a standardized methodology for identifying systemically important credit institutions across CEMAC based on five weighted criteria: size, interconnectedness, complexity, substitutability, and cross-border activities. The instruction mandates calculating cumulative scores from specific financial indicators over a six-month period to classify institutions into high, medium, low, or non-systemic categories. It requires the Secretary General to propose an annual list of qualifying institutions and conduct biennial reviews of the criteria to adapt to macroeconomic shifts, with full implementation effective September 1, 2018.
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