CEMAC: With 67.9% of bank loans, four banks in Cameroon dominate the credit market at the end of March 2022

(Business in Cameroon) – In the CEMAC zone, a community area consisting of six states (Cameroon, Congo, Gabon, Chad, CAR and Equatorial Guinea), credit institutions established in Cameroon largely dominated the bank credit market in the first quarter of 2022 These are Afriland First Bank, whose capital is controlled by Cameroonian billionaire Paul Kammogne Fokam; SCB Cameroon, a local subsidiary of the Moroccan group Attijariwafa Bank; Société Générale Cameroun, the Cameroon subsidiary of the eponymous French group; and Bicec, a subsidiary of the Moroccan Banque centrale populaire (BCP).

Specifically, over the first three months of the current year, “Afriland First Bank, which was number two in the fourth quarter of 2021, occupies first place with 19.88% of the total amount of loans granted, compared to 18.38% at the end 2021. SCB Cameroon, which was ranked third in the fourth quarter of 2021, got 46 points to take second place with 18.31% of the shares. Societe Generale Cameroon, which dominated the credit market in the last quarter of 2021, dropped 53 points to third place; it has only 16.16% of the market share. The shares Bicec market share remained stable at 13.06%“, describes Beac, the issuing institution common to the six CEMAC countries, which has just published the report on “the development of debtor rates that credit institutions practice in CEMAC“.

In addition, despite this clear dominance of the credit market in CEMAC, between January and March 2022, the dynamism in terms of financing the economies observed in the banks established in Cameroon weakened slightly, quarter to quarter. In fact, central bank data reveals, “the total amount of loans granted by the Cameroonian banking system amounted to 1,013.3 billion FCFA against 1,185.9 billion FCFA in Q4 2021, a decrease 14.55%“.

In the same period, the supply of credit in Cameroon continues to be dominated by banks, which concentrate 98.78% of total registered financing against 1.22% for financial institutions“, Beac continues, thus revealing the unchallenged rule of Cameroon’s banks over the CEMAC financial system. This reality is all the more understandable since Cameroon, with a network of 18 approved banks, which also houses 40% of CEMAC’s industrial structure, according to various official data, alone has almost 50% of the community’s banking network.

Brice R. Mbodiam

Also read:

10-10-2022 – Bank loans: In Cameroon, only the interest paid to SMEs increased at the end of March 2022 (Beac)

07-10-2022 – Bank loans: Cameroon and Chad practiced the lowest interest rates in CEMAC in the 1st quarter of 2022

06-10-2022 – CEMAC: Bank loans to SMEs cross the 20% mark in the first quarter of 2022 (Beac)

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