• Ten banks showed a net capital deficit of CFA247.3 billion in 2024

• Nearly 40% of banks failed to meet all capital prudential standards

• Higher minimum capital requirements will take effect from 2026

In the CEMAC region, a group of banks continues to post losses linked directly to insufficient capital levels. The 2024 multilateral surveillance report and 2025–2026 outlook, published on Monday, December 15, by the CEMAC Commission, notes that “in 2024, 10 banks, including five in Chad, recorded an overall net capital shortfall of CFA247.3 billion [$442.5 million].”

The report also states that 22 of the 56 banks operating in the region failed in 2024 to comply with all prudential standards related to net capital. This means that nearly four out of ten banks show weaknesses in this area across the sub-region. Capital represents the financial base of a bank, allowing it to absorb losses and comply with regulatory requirements. When capital is insufficient, banks become more vulnerable to economic and financial shocks.

Slow implementation of banking reforms

The Commission points to the slow resolution of troubled banks, particularly those that are undercapitalized. This situation is largely explained by incomplete implementation of decisions taken by COBAC, the CEMAC banking regulator, by some national authorities.

From a prudential standpoint, compliance levels remain mixed. In 2024, the most widely respected standards were the liquidity ratio, which measures banks’ ability to meet short-term obligations, and the overall risk exposure ceiling, which limits total exposure. By contrast, the least respected rule remains the individual risk concentration standard, which is designed to prevent banks from concentrating excessive credit exposure on a single client or group.

These weaknesses persist even as the sector continues to expand. In 2024, banking balance sheets grew by 11.5%, following an 11% increase in 2023. This growth was driven by higher customer deposits (+8.2%), an increase in gross lending (+6.5%), and a rise in excess liquidity (+10.2%).

New capital requirements from 2026

The CEMAC Commission’s warning comes at a pivotal time for the sector. COBAC has decided to raise capital requirements from January 1, 2026. All banks in the region will be required to hold a minimum share capital of CFA25 billion, while financial institutions will have to meet a threshold of CFA4 billion. The decision applies to Cameroon, Congo, Gabon, Equatorial Guinea, the Central African Republic, and Chad.

According to a study published in August 2025 by economist Serge Nkoum, higher minimum capital levels strengthen banks’ equity base. This improves their capacity to finance the economy, absorb losses, and comply with prudential standards. Stronger capital also reduces the risk of bank failures and limits the need for public support in times of crisis.

In this context, bank recapitalization is seen as a key condition for strengthening financial stability in the region. In 2024, the CEMAC region had 56 active banks and nine financial institutions.

Chamberline Moko