From Microfinance To Bank: FCFA 10 Billion is Minimum Capital

The procedure that might take up to five years to materialise is characterised by regular COBAC fol

Moving from a micro-
finance institution

to a bank is not

only difficult but

also takes a lot of time. But one

Microfinance institution Cré-

dit Communautaire d’Afrique,

CCA, has braved the odds to

be qualified as the 15th bank

in Cameroon. As per Central

Africa Banking Commission (CO-
BAC) text, any microfinance

that thinks merits to become a

bank, writes an application to

the control institution. Going

by COBAC’s regulations, FCFA

10 billion is the minimum capital

the would-be bank should have.

The reinforcement of internal

and external security system is

another must-fulfilled condition.

In this case, the use of public

security agents is obligatory

while the building should be

sophisticated and save construc-
ted following COBAC norms

and under strict supervision.

The Director of Financière

d’Epargne et de Crédit (FINEC),

Alban Clovis Fogang, disclosed

that the information system of

the bank should not only go for

all operations, but should be

automatic as well. In addition to

the aforementioned conditions,

the microfinance institution

must enter into partnership

with foreign banks and also

have enough money to give

out as loan. The management

of the would-be bank equally

has to change following COBAC


Alban Clovis Fogang, Director

General of FINEC intimated that

the reinforcement of manage-
ment staff that will comprise

a General Manager, Deputy

General Manager, and Direc-
tors in charge of loan, foreign

affairs, among others, must be

put in place. Following this,

the job responsibilities and job

description has to change. For

example, the General Manager

is independent and pilots the

affairs of the bank compared to

microfinance governed by board

of directors. He was quick to

add that the board of directors

oversee and evaluates the work

of the General Manager. Still

on governance, the bank has to

employ more staff and as well

apply the collective convention

of banks which means staff’s

salary and other gratuities has

to increase.

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