The Banking Commission of Central Africa (COBAC) has published its 2025 annual report, documenting banking growth alongside rising sovereign exposures and persistent weaknesses in asset quality across the Central African Economic and Monetary Community (CEMAC). Bank assets increased 10.3% to approximately XAF 27.5 trillion, while aggregate net profit reached XAF 524 billion. The report also reviews reforms adopted in 2025 to raise minimum capital, strengthen depositor protection and deepen regional banking integration. Financing to states and related entities rose 19.9% to XAF 10.641 trillion, equivalent to 38.6% of bank assets and more than five times aggregate net prudential capital. Banks’ gross nonperforming loans increased 10.9% to XAF 2.244 trillion, although their share of gross lending edged down to 16% from 16.2%. Eighteen banks lacked sufficient net prudential capital to meet all applicable requirements, compared with 22 in 2024. Microfinance institutions showed sharper deterioration, with nonperforming loans reaching 20.5% of gross lending and aggregate net profit falling 89.4% to XAF 2.4 billion. Meanwhile, reporting payment institutions processed 4.6 billion transactions worth XAF 44.037 trillion, increasing the supervisory focus on operational continuity, cybersecurity and financial crime risks. The 2025 capital reform raised minimum share capital to XAF 25 billion for banks and XAF 4 billion for financial institutions. Existing institutions below those thresholds must submit progressive capital increase plans and comply fully by Dec. 31, 2029. Other measures established funding and depositor compensation procedures for the regional deposit guarantee fund and harmonized dormant account rules, including requirements to identify and trace account holders before transferring unclaimed assets. The single licensing regime also enabled authorization of six bank branches across CEMAC. Priorities outlined for 2026 include implementing Basel II and III standards, developing consolidated supervision and a single banking law, and introducing targeted inspections of regulatory reporting quality.
Banking Commission of Central Africa reviews 2025 banking growth and rising sovereign exposures reaching 38.6% of assets
The Banking Commission of Central Africa’s 2025 annual report records 10.3% growth in bank assets but highlights sovereign exposures reaching 38.6% of assets and persistent credit quality weaknesses, particularly in microfinance. Reforms adopted during 2025 raised minimum capital to XAF 25 billion for banks and XAF 4 billion for financial institutions, with full compliance required for existing institutions by Dec. 31, 2029, and strengthened depositor protection. The report’s 2026 priorities include Basel II and III implementation, consolidated supervision and inspections targeting regulatory data quality.