 "A NEW BOOM"
After having undergone two waves of reorganization in 1989-1992 and 1996-1999, during which insolvent banks such as BMBC and Crédit Agricole were liquidated, and viable banks like BICEC, SGBC or SCB-CL were restructured, the banking environment has been making great progress. The ten commercial banks in Cameroon, which have all been privatized since the privatization of BICEC in January 2000, are showing satisfactory management ratios. All these banking institutions are now solvent, liquid and profitable. SRC, Cameroon's Debt- Recovery Company chaired in a dominating way the reorganization of the banking structure through efficient management of bank portfolios, and is successfully pursuing its liquidation mission. " All Cameroon citizens were compensated. There remains only a few State organizations to refund such as the Caisse Nationale de Prévoyance Sociale (CNPS), (National Social Welfare Fund), the Caisse d'Epargne Postale (Postal Services Savings Bank) and the Crédit Foncier (Building Society) for a remaining total of 37 billion ", declared Mr. Etoundi Oyono, General manager of SRC.
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In addition, the commissions liberalization on banking transactions and the reinforcement of the legal framework on all financial transactions has generated greater competition between banks which share approximately 558 billion CFA Francs worth of private deposits. The best the performances have been recorded by the three main commercial banks: SGBC, SCB/CL and BICEC. They add up to nearly 70% of all bank deposits and 71% of all bank credits. Moreover, the low banking rate of Cameroon's population – 9% to 10% of the working population – leaves room for potential growth in this sector. While direct debit cards have recently made their appearance, cash-dispensers are in the process of being installed in all institutions. To provide long-lasting resources to the economy of Cameroon, a national stock market should open its doors at the end of the year. At first, " only institutions such as banks, insurance companies and other large companies will carry out operations ", specifies Edouard Akame Mfoumou, Minister of the Economy and Finance. In the insurance sector, insolvent private companies (Amacam, CNR) were liquidated and SOCAR, a state company was privatized. All economic parties involved in this sector have to be ready for the opening of a financial market and the probable emergence of an African bond market. |
