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Cameroon – Finance: The Banking Commission of Central Africa withdraws microfinance approval from “Ndjangui du Cameroun”

The Banking Commission of Central Africa withdraws microfinance approval from Ndjangui du Cameroun
Written by Deckson N.

The Banking Commission of Central Africa (Cobac) has just published a decision dated 21 June 2016 revoking the approval of “Ndjangui du Cameroun“, a first-tier microfinance institution (MFI) which, according to the regulations, Savings and grants credits exclusively to the members, without requiring a minimum capital.

The approval of this MFI, says the financial gendarme of the subregion, is withdrawn for “disciplinary” reasons. “The President of Cobac is entitled to designate a liquidator in Ndjangui du Cameroun and fix his remuneration,” said the statement of the president of the Banking Commission, Lucas Abaga Nchama (photo). Who, less than a month ago, on December 20, 2016, issued a similar decision sanctioning with disciplinary reasons for the Mutuelle de développement et d’investissement du Cameroun (Mdic). A few days earlier it was the Crédit Mutuel who passed through the trap door.

These consecutive withdrawals reflect the precarious nature of the microfinance sector.

As of November 30, 2016, 412 MFIs are authorized to practice in Cameroon against 418 the previous year, according to the list published by the Cameroonian Ministry of Finance. So for the year 2016 alone, six MFIs went bankrupt.

About the author

Deckson N.

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