Friday 2 August 2019 in Brazzaville, Constant Badia, Director General of Nationales Financial Institutions (DGIFN), presided over the 4^thannual consultation meeting of this departmentof the Ministry of Finance and Budget and the managersof 11 banks established in Congo.

9 items were discussed at this meeting. They include:

The adoption of the report of the 3^thannual consultation meeting of 20 December2016 ; the state of the banksystem as at 30 April 2019 presented by Mr.Douniama Ibougna, Director of Credit and Similar Institutions (DECA); presentation on the draft regulation on consumer protection of products and services of the Economic and Monetary Community of Central Africa (CEMAC), presented by Mr. Ghislain Yebas Mandelo, service head for the balance of payment at the Bank of Central African States (BEAC);  the note on the taxation of life-saving products by banks, by Mr. Lazare Lembion, Director of AGC-Vie (Congo General Insurance), representing the professional association of insurance companies (APSACO), and the presentation on the new foreign exchange regulations, by Mr. Philippe Diaoua, foreign exchange expert. 

In addition to these presentations, the participants at this meeting discussed theconcerns raised by banks‘ managersand the regulatory requirements for banks presented by DGIFN l, namely: compliance with section 36 of the annex to the Conevention relating tothe harmonisation of bank regulations and Circular N°002/MEFPPPI/CAB of 4 February 2015 on the transfer of financial information and compliance with deadlines; compliance with provisions of sections 20 and 21 of Regulation 01/CEMAC/UMAC/CM of 2 October 2012 to publish bank requirements and forward them to the Monetary Authority ; compliance with provisions of sections 7 of Regulation 02/CEMAC/UMAC/CM of 2 October 2012 on the overall effective rate of each loan freely discussed between the borrower and the lender. In fact, Mr. Joseph Mountou Kango, professor at the University Marien N’Gouabi, shared his experience on the Asset/Liability Management (GAP) by banks, while Mr. Calixte Tabangoli, Director of the Postal Bank of Congo (BPC) first vice-president of the professional association of credit institutions (APEC), presented the activities carried out by this association in the first half of 2019 and the projection of activities in the second half.

What can be taken from the situation in the banksystem?

As regards the situation of the banksystem as at 30 April 2019, and in particular the evolution of the balance sheet situation, it appears that the overall aggregate balance sheet of the banks amounted to 1,768 billion FCFA. It decreased by 1.1 per cent in April and by 1.9 compared to 30 April 2018. The deposits collected amounted to 1,164 billion FCFA (65.8 per cent of the overall balance sheet). They declined by 1.4  per cent per month and by 5.2 per year. Gross loans to customers amounted to 1,181 billion F CFA. They dropped by 1.6 per cent in April 2019 and 6.2 per cent compared to their level of April 2018. Provisions for impairment of customer accounts increased by 33.0 per cent compared to the level reached the previous year on the same date. They amounted to 113 billion FCFA. As a result, net loans amounted to 1,069 billion FCFA (60,4 per cent of the overall balance sheet), an annual variation of -9.1 per cent.

Outstanding debts amounted to 288 billion FCFA. They accounted for 24.3 per cent of gross loans compared with 20.8 per cent twelve months earlier. As a result, the apparent quality of the portfolio has deteriorated, compared to the one that prevailed in April 2018. The coverage rate of outstanding debts by provisions was 39.2 per cent against 32.3 in April 2018. The banks' statements and the results of last audits revealed a need for additional provisions of 20 billion FCFA.

Loan coverage by deposits was 98.5per cent compared to 97.4 per cent in Avril 2018. Thus, customers' transactions shown a risk, given the rate below 100 per cent.  

The consultation meeting with banks' managers made it possible to highlight communication issues between the banking professions and other financial institutions, even with the civil society (association of consumers, universities,...) and to emphasise the need for broader consultation with other public administrations and stakeholders in the bank sector. 

Questionned by journalists, the chairman of the meeting, Constant Badia, said that “Unlike previous meetings, the 2019 consultation has been extended to stakeholders in the bank sector, including the professional associationof insurance companies inCongo (APSACO), the Bank of Central African States (BEAC), the university and the civil society (represented by a consumer rights association). We took this opportunity to urge the banks to make available to customers , in accordance with the laws in force, all the necessary information to allow them easy access to loans”.

Let's recall that the 3^thannual consultation meeting had taken place in 2016, but these meetings did not take place during the years 2017/2018 for technical and industrial reasons.

The Press office of the Ministry of Finance