Breathing on the Palms of Commercial Banks

Minds remain fresh on the engagement taken by local banks some two years back to make their imprint in the financing of the country’s economy. The commitment contained in a press statement issued at the end of an extraordinary session of the National Council of Credit (NCC) and signed by the Minister of Finance in his capacity as the council president was a veritable step towards tackling the new challenges facing the nation. Worthy of note was and remains the upsurge of insecurity caused by the multiplicity of attacks from the Islamist group, Boko Haram and the dwindling oil prices on the international market. In effect, the commitment had to do with loosening the ropes of loan disbursement and opening up both to the State and the private sector wishing to obtain loans to finance activities that can boost the nation’s economy. This decision to say the least was coming of age considering the tides Cameroonians had to go through in order to obtain loans from financial institutions operating in the country many of which are floating in excess liquid cash.
The press statement issued at the end of the session of the National Branch of the Bank of Central African States (BEAC) that held on July 06, 2017 tells of a situation that has changed significantly. According to the statement, internal credit issued by banks from March, 2016 through March this year rose by 28.9 per cent to FCFA 3,145.8 billion up from FCFA 2,440.9 billion indicating an increase of FCFA 704.9 billion. This increase in the amount of loans given out is a true translation of the corresponding increase in bank liquidity.  The important role of commercial banks is particularly felt this time especially as they have been the main buyers of government treasury bills and bonds driven by the confidence they have on the State.
What is however important to note is that commercial banks constitute the bedrock for the development of key sectors of the economy. The greatest potential of the commercial banking sector is in it...