Congo: Bank lending down despite increase in the number of loans

The Congolese banking sector granted 15,030 new loans in the third quarter of 2024, up 27.66%  year-on-year, but the total volume of loans fell 26.85% to 237.5 billion FCFA.

This decline is explained by the BEAC’s monetary tightening, which limited the liquidity available. Despite this trend, BGFIBank Congo, Ecobank Congo and SGC Bank remain the main drivers of financing for the economy, accounting for 44.6% of loans granted over the period.

Loans to businesses, although representing 60.8% of the total with CFAF144.4 billion, fell, particularly those to large businesses (-29.68% year-on-year) and SMEs (-10.16%). Conversely, loans to individuals rose by 29.22% to CFAF 33 billion, despite a rise in lending rates to 9.77%. This gradual tightening of credit access conditions could have a greater impact on the financing of the Congolese economy in the months ahead.

source: Business in Cameroon