National credit council publishes troubling report on bank penetration in Cameroon

BUSINESS 18 May 2021
National credit council publishes troubling report on bank penetration in Cameroon

BY NDUMBE BELL JOSEPH GASTON IN DOUALA

In a country where the penetration rate of banking services is still very abysmal, the National Credit Council has recently published the result of a study where the period under review from February 2020 to February 2021 indicates that the panoramic view of the fifteen major banks operating in Cameroon are facing fluctuating market shares and unstable fortunes.

The study which mainly focused on customer deposits as their yardstick, identified only four (4) banks in control of over 50% of their overall services. At the top is Afriland First Bank (AFB) that consolidated its position with FCFA 1005.7 billion deposited this year as against FCFA 630.3 billion in the same period last year and estimated to have a market share of 18.52 percent.

The second place is said to be Societe Generale du Cameroun (SGS) with a collection of FCFA 810.7 billion or 14.93 percent of their own niche followed in third place by the International Bank of Cameroon for savings and Credit (BICEC) with deposits of FCFA 603.1 billion, holding 11.11% of the market share and Banque Atlantique with a deposit of FCFA 424.7 billion deposit, 7.82 percent share of the market.

The other banks share about 48% led by Societe Commercial du Cameroun (SCB) 9.09 percent, the United Bank of Africa (UBA) 7.17 percent, Ecobank 6.66 percent, Commercial Bank Cameroon (CBC) 5.98%, Credit Communautaire d’Afrique (CCA-Bank) 5.58 percent and BGFI Bank 5.48 percent. These, the National Credit Council has named as middle class banks because of their market shares.

After the mid table banks come the Standard Chartered Bank with 3.82 percent and Citibank 2.35 percent who are known to be more of investment banks than commercial banks.

At the bottom of the table is the Cameroon bank of SMEs  (BC-PME) holding 0.15%, followed by Union Bank of Cameroon (UBC) with 1.07 percent and the National Finance Cameroon (NFC) with 2.02% who are reported to have received some oxygen from the state or become obsolete according Central African banking Commission,COBAC-based regulations.

Some vital conclusions also arrived at by the report of the National Credit Council stated that western banks where there used to be heavy reliance on national saving and financial sourcing have lost equilibrium in favour of national and  continental banks whose softer conditions or new paradigm are more attractive to customers and made these banks a growing force.

About the author

Leave A Reply

Leave A Reply