Who are we ?
In this review, two documents were adopted: on the one hand the decision laying down the rules, instruments and modes of intervention of BEAC in the money market, on the other hand, the decision on the system of reserve requirements in the Economic and Monetary Community of Central Africa (CEMAC).
Minimum Reserves
Reserve requirements should be understood as the funds that credit institutions operating in the CEMAC sub-region are required to deposit in accounts held in BEAC. Currently, the management of these resources is leaning on savings (deposits) of households and businesses in commercial banks. The share (coefficient) of these deposits varies by country group so far and based on the overall liquidity of the banking system. According to the observations of the Central Bank, this device showed weaknesses. Hence the redevelopment introduced through the Decision adopted at CPM on Wednesday. "The proposals introduced aim to standardize the coefficients of reserve requirements, with the fixing up of thresholds to exclude banks that collect some money from their customers." That would mean adopting the same rate for all banks in the sub region. Reserve requirements will not only consist of deposits, but also of market securities, i.e. the bills and bonds issued by various States of the sub region in BEAC money market (to raise funds for their liquidity or to finance projects) and redeemed by banks.
Money Market
This is a short-term market (shorter than two years) where banks, insurance companies and states lend and borrow funds according to their needs. BEAC money market operations started in July 1994. The central bank intervenes to inject or withdraw money as needed. These operations are backed by different media like Treasuries, commonly issued by the CEMAC States. The reform initiated in this segment originated from two observations: first the boundaries of the nature of the monetary policy instruments and their application procedures, then BEAC simultaneous positive and negative interventions (injection or withdrawal) hampering the legibility of its monetary policy operations. The new reform brings improvements to diversify the instruments to improve the monetary policy framework.
Source: adapted from the article “la BEAC veut changer le cap dans la politique monétaire”, Cameroon Tribune www.cameroon-tribune.cm
Proparco Loans EUR 20 Million to Société Générale Cameroun
The loan announced Friday will allow the bank to increase its medium- and long-term financing for enterprises.
Proparco lends XAF 13 billion (EUR 20 million) to Société Générale Cameroun (SGC). "This credit line will support the development of its medium and long term financing activities for small, medium and large enterprises in Cameroon," a press release dated 13 May said.
The subsidiary of the French Development Agency (Agence Française de Développement - AFD) dedicated to the private sector equally granted this type of loan to the “Banque internationale du Cameroun pour l’épargne et le crédit (BICEC)” last December, a subsidiary of French banking group BPCE. It has also committed EUR 12.5 million and USD 10 million respectively in favour of Société Générale subsidiaries in Chad and Ghana. It also granted EUR 10 million in June 2014 to Oragroup to help finance SMEs in Guinea, Chad, Gabon and Togo.
Housed in a decade in Douala, Proparco has committed to date in Central Africa in projects in the financial, energy, food, and telecom sectors, for cumulative investment of XAF 98.4 billion ( EUR 150 million), according to data from the financial institution.
Operating in Cameroon for 53 years, SGC has made a profit of XAF 4.7 billion in 2014, for a GNP of XAF 48.8 billion. It has 184 000 customers and a network comprised of 32 branches.
Source: adapted from the article “Proparco accorde 20 millions d’euros à la Société Générale du Cameroun”, Jeune Afrique Business www.jeuneafrique.com
