News / Africa

Cameroon’s Banks, Microfinance Institutions Required to Increase Capital Reserves

Cameroon’s banks are required to acquire more capital as a cushion for economy in future financial crises

Multimedia

Audio

A group of financial experts has ordered all commercial banks in the Central African Economic and Monetary Community, CEMAC, to raise the minimum amount of their capital reserves.

Cameroon’s Banks, Microfinance Institutions Required to Increase Capital Reserves
Cameroon’s Banks, Microfinance Institutions Required to Increase Capital Reserves

The 24-member Committee of Banking Supervisors of West and Central Africa says the reserves must be US $20 million [10 billion FCFA]  to enable them cushion the effects of any future financial crisis.  Previously, they were required to maintain up to US $ 4 million.

The measures take effect in 2014.  They were approved at the latest meeting of the banking supervisors’ committee held in early August in the Cameroonian capital, Yaounde.

Delegates to the meeting agreed that the global financial crisis has not been as hard on Africa’s financial institutions as it’s been in developed economies. They say it’s largely because of the weak integration of developing countries in the international financial system.  But they warn Africa may not be so fortunate in the future, and its banks must be ready for unpredicted risks.

Idriss Ahmed Idriss the newly elected secretary general of the Committee of Banking Supervisors of West and Central Africa says,” the committed decided to strengthen the banks and microfinance institutions in Central Africa by raising their required capital reserves.   The underlying principle of any bank is to be able to fulfill its financial obligations and to produce its deposits upon demand.  To stay healthy, banks must generate their own income and help encourage economic activity.”

Bank of Central States Yaounde
Bank of Central States Yaounde

The Central African Economic and Monetary Community is helping banks in the sub-region in meeting the new capital requirement.  Lucas Abaga Nchama, governor of the Bank of Central African States, BEAC, says the sub-regional central bank and the Central African Banking Commission are disbursing US $24 million for the purpose.

Ahmed Idriss warns that banks and microfinance institutions that don’t cooperate will face tough sanctions.

He says these banks have no right to exist because they will greatly weaken the financial system in the sub-region.  He further states  the supervisory committee will force uncooperative institutions to liquidate, merge or be taken over.  

Observers describe the measures as the start of an opportunity to reshape the supervision of banking activities in the region and harmonize standards to ensure the efficiency of the regulatory system.  

You May Like

Obama: I Will Do 'Everything I Can' to Close Guantanamo

US president says prison continues 'to inspire jihadists and extremists around the world' More

Sierra Leone Educates on Safe Ebola Burials

Also, country is improving at rapid response to isolated outbreaks, but health workers need to be even faster, officials say More

Religion Aside, Christmas Gains Popularity in Communist Vietnam

Increasingly wealthy Vietnamese embrace holiday due to its non-religious glamor, commercial appeal More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Decision on Cuba Underscores Divisions Among Miami Cubansi
X
Sharon Behn
December 19, 2014 9:34 PM
For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video US Decision on Cuba Underscores Divisions Among Miami Cubans

For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video Three Cities Bid for Future Obama Presidential Library

President Barack Obama still has two years left in his term in office, but the effort to establish his post-presidential library is already underway. The bid for the Obama Presidential Library is down to four locations in three states -- New York, Hawaii, and Illinois. As VOA’s Kane Farabaugh reports, each of them played an important part in the president’s life before he reached the White House.
Video

Video Cuba Deal is Major Victory for Pope’s Diplomatic Initiatives

Pope Francis played a key role in brokering the US-Cuba deal that was made public earlier this week. It is the most stunning success so far in a series of peacemaking efforts by the pontiff. VOA religion reporter Jerome Socolovsky has more.
Video

Video Fears of More Political Gridlock in 2015

2014 proved to be a difficult year politically for President Barack Obama and a very good year for the U.S. Republican Party. Republican gains in the November midterm elections gave them control of the Senate and House of Representatives for the next two years -- setting the stage for more confrontation and gridlock in the final two years of the Obama presidency. VOA National Correspondent Jim Malone has a preview from Washington.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.

All About America

AppleAndroid