Financial Crime World

Gabon Eyes Banking Regulations in Shape as Regional Body Takes Lead

Gabon has established itself as a key player in the region’s banking regulations, striving to streamline its financial sector. The country’s banking system is overseen by the Bank of Central African States (BEAC), headquartered in Cameroon.

Regulatory Framework

The BEAC plays a crucial role in regulating the country’s banking system through the Banking Commission of Central African States (COBAC). COBAC ensures that financial institutions operate within the bounds of the law, resulting in a stable and efficient banking environment. The commission’s oversight enables easy conversion between currencies within the CEMAC zone.

Authority and Institutions

  • Gabon’s Ministry of Budget retains authority over the country’s exchange control system.
  • The country’s banking sector comprises one development bank (Gabonese Development Bank, BGD) and five main commercial banks.
    • The BGD focuses on providing financing to small- and medium-sized enterprises.
    • The International Gabonese and French Bank (BGFI) holds a dominant position as the largest financial group in the CEMAC zone.

Banking Services

Commercial banks offer a range of corporate banking services, including procurement from overseas institutions for clients who require them. Local credit is limited and expensive but available to both foreign and local investors on an equal basis. Notably, Gabon’s oil companies are able to finance themselves independently outside the country.

Credit Card Usage and Compatibility

  • Credit card usage is relatively low in Gabon.
  • Only a few cards are accepted across the region.
  • Visa appears to be the most widely accepted card type.
    • However, there is no guarantee that U.S.-issued chip-enabled cards will be compatible with local vendors.

International Connections and Opportunities

The country’s banking system has seen excess liquidity transferred to correspondent banks outside the region. This indicates a strong connection between Gabon’s financial sector and international markets. Businesses looking to expand into Gabon may find opportunities in this growing economy, subject to strict adherence to regional banking regulations.