Cameroon today is a member state of the Bank of Central African States (BEAC) and also a member of the Central African Economic and Monetary Community (CEMAC). These two bodies constitute part of the Franc zone. Franc zone means those African States whose monetary policy is being directed by France especially in the domain of exchange rate with respect to currencies of other countries, convertibility to other currencies, centralisation of international exchange reserves and harmonisation of regulations.
In Cameroon, banking regulations are aimed at attaining the following goals; prudential, systematic risk reduction, avoid misuse of banks, confidentiality and credit allocation. These objectives are aimed at enforcing market discipline.
The major instruments regulating banks in Cameroon are as follows;
- The Ordinance No 85/002 of 31st August 1985 relating to the establishment of Credit institutions or loan House. This Ordinance has been ratified by Law No 88/006 of July 1988 and Law No 90/019 of August 10th 1990. These laws repealed the old practice whereby only persons of Cameroonian nationality had the privilege to head banking institutions in Cameroon.
- Ordinance No 90/6 of October 26th 1990 exempts banking institutions from the payment of registration fees and stamp duties on all Deeds and judgments relating to the transfer and/or sale of immovable property.
- The main banking regulatory instrument is the COBAC text of 17 January 1992 harmonizing banking regulations in the six member states of B.E.A.C.
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