CEMAC: A single banking licence to facilitate bank expansion

On January 1st 2025, a new banking regulation came into force within the Central African Economic and Monetary Community (CEMAC), replacing the 2000 regulation. It introduces a single licence, allowing credit institutions to establish themselves in several States without applying for new licences.

A bank authorised in a CEMAC country may open a branch in another country, branch in another country without having to go through cumbersome administrative formalities. However, unlike the previous legislation, subsidiaries are no longer directly concerned: a branch can only be transformed into a subsidiary if it reaches a threshold defined by COBAC.

The process is now faster: 3 months for the Ministry of Finance of the State concerned to forward the application to COBAC
3 months for COBAC to make its decision : The possibility of appealing to the CEMAC Court of Justice has been removed.

Tighter supervision: Branches will be subject to strict controls and may be subject to disciplinary and/or financial penalties in the event of non-compliance.

A lever for regional integration: According to expert Yvette Kalieu Elongo, this regulation promotes the freedom to provide banking services and monetary integration in CEMAC. It also enables banks to reduce their operating costs and strengthen their financial solidity.

Banks have 12 months to comply with the new rules. It remains to be seen whether this measure will finally speed up the regional expansion of institutions such as Afriland First Bank, which was planning to open branches in Chad and Congo as early as 2022.

source: ecomatin