COBAC urges stricter credit risk management in CEMAC zone

The Central African Banking Commission (COBAC) has called for stricter credit risk management across the CEMAC zone following a significant rise in non-performing loans. During a meeting in Brazzaville, regulators addressed the fact that the average rate of non-performing loans in CEMAC banks stood at 15.42% as of June 30, 2026, significantly higher than the international benchmark of 5%.

Banking officials, including finance, accounting, and commitment managers, were urged to overhaul their risk management frameworks. Discussions focused on the entire credit lifecycle, from initial granting to recovery or write-off. Experts highlighted frequent deficiencies in loan classification, accounting, provisioning of doubtful debts, and the management of guarantees.

Patricia Danielle Manon, Deputy Secretary General of COBAC, emphasized that effective risk control requires a continuous chain of responsibility involving credit granting, monitoring, accounting translation, and auditing. The sessions also included meetings with statutory auditors to improve the quality of financial data and oversight within the region's credit institutions.