Cameroon’s Banking Regulation Evolution: A Secured Legal and Commercial Environment for Foreign Investment
As a member state of the Bank of Central African States (BEAC) and the Central African Economic and Monetary Community (CEMAC), Cameroon has undergone significant changes in its banking regulations to ensure a secured legal and commercial environment for foreign investment.
The Evolution of Banking Regulations in Cameroon
Cameroon’s banking industry is governed by a set of flexible laws and regulations that can be modified according to socio-cultural, political, and economic developments within the country. The main banking regulatory instrument is the COBAC Text of 1990, which outlines the framework for the operation of commercial banks in Cameroon.
Key Features of the Regulatory Regime
- No restrictions on ownership, allowing for the existence of 100% privately-owned banks
- Possibility to have offshore offices in the country
- Investment Code of 1990 offers guarantees and attractive conditions for investors
- Allowing foreign nationals to invest in the banking sector
Commercial Banks in Cameroon
The following commercial banks operate in Cameroon:
- African Development Bank
- Afriland First Bank
- Atlantic Bank Cameroon
- Banque International du Cameroun pour l’Epargne et le Crédit (BICEC)
- BGFI Bank Cameroon
- Citibank
- Commercial Bank of Cameroon (CBC)
- Ecobank Cameroon
- SCB Cameroon
- Société Générale Cameroun (SGC)
- Standard Chartered Bank
Incorporation Procedure for Banks in Cameroon
The incorporation procedure involves forwarding documents to the Ministry of Economy and Finance, including:
- Draft Memorandum and Articles of Association
- List of shareholders
- Business plan
- Budget
- Management structure
- Proposed branch network
The Ministry issues a license, which is published in the Official Gazette and at least one widely circulated national newspaper.
Restrictions on Banking Practices
Some restrictions apply to banking practices in Cameroon, including:
- Money laundering
- Constructive capital/currency exports
- Exchange bureau
- Holding of undue credit balances in nostro accounts for periods over one month
These practices are covered by the Penal Code and other relevant laws.
Conclusion
Cameroon’s banking regulation evolution has created a secured legal and commercial environment for foreign investment. The country’s regulatory regime is flexible and offers attractive conditions to investors, making it an attractive destination for foreign investment in the banking sector.