
Contents
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30.1 Introduction 30.1 Introduction
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30.2 The Bank-dominated Financial Structure in an Ever-Changing Monetary Policy Environment 30.2 The Bank-dominated Financial Structure in an Ever-Changing Monetary Policy Environment
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30.2.1 An Over-liquid Banking Sector Dominated by Large Foreign Groups 30.2.1 An Over-liquid Banking Sector Dominated by Large Foreign Groups
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30.3 A Microfinance Sector Consisting of Many Stakeholders but Still Insignificant 30.3 A Microfinance Sector Consisting of Many Stakeholders but Still Insignificant
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30.4 An Ever-evolving Capital Market Influenced by an Embryonic and Nascent Regional Financial Market 30.4 An Ever-evolving Capital Market Influenced by an Embryonic and Nascent Regional Financial Market
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30.5 An Ever-Changing Monetary Policy 30.5 An Ever-Changing Monetary Policy
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30.6 The Performance of the Financial Sector is Evolving but Still Poor and Vulnerable Compared to Other Countries 30.6 The Performance of the Financial Sector is Evolving but Still Poor and Vulnerable Compared to Other Countries
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30.6.1 Weakness in the Financial Deepening 30.6.1 Weakness in the Financial Deepening
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30.6.2 Low Financial Diversification 30.6.2 Low Financial Diversification
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30.6.3 Low Contribution to Economic Financing 30.6.3 Low Contribution to Economic Financing
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30.7 A Banking Sector Facing Several Constraints Limiting Credit and Likely to Hinder the Transmission of Monetary Policy 30.7 A Banking Sector Facing Several Constraints Limiting Credit and Likely to Hinder the Transmission of Monetary Policy
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30.7.1 Constraints Related to the Credit Supply 30.7.1 Constraints Related to the Credit Supply
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30.7.2 Constraints Related to the Credit Application 30.7.2 Constraints Related to the Credit Application
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30.7.3 Structural Constraints Related to the Business Environment 30.7.3 Structural Constraints Related to the Business Environment
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30.8 Banking Sector Vulnerable to Oil Shocks and Faced with Weak Monetary Policy Transmission and Fiscal Dominance 30.8 Banking Sector Vulnerable to Oil Shocks and Faced with Weak Monetary Policy Transmission and Fiscal Dominance
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30.8.1 An Increasingly Stable Banking Sector but Vulnerable to Exogenous and Macroeconomic Shocks 30.8.1 An Increasingly Stable Banking Sector but Vulnerable to Exogenous and Macroeconomic Shocks
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30.8.2 A Low Transmission of Monetary Policy to the Real Sector 30.8.2 A Low Transmission of Monetary Policy to the Real Sector
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30.8.3 Fiscal Dominance and Crowding Out of the Private Sector 30.8.3 Fiscal Dominance and Crowding Out of the Private Sector
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30.9 Conclusion 30.9 Conclusion
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Notes Notes
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References References
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30 The Monetary and Financial Sector in Cameroon: Structure, Performance, and Vulnerabilities
Get accessJacques Landry Bikai, Bank of Central African States (BEAC)
Guy Albert Kenkouo, Bank of Central African States (BEAC)
Patrick-Nelson Daniel Essiane, Bank of Central African States (BEAC)
Moustapha Mbohou Mama, International Monetary Fund (IMF)
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Published:26 January 2023
Cite
Abstract
Cameroon is a member of the Central African Economic and Monetary Community (CEMAC), a monetary union made up of six countries. Its monetary policy, conducted by the Bank of Central African States (BEAC), is therefore decided at a sub-regional level, and only fiscal policy is the responsibility of each State, but subject to multilateral surveillance criteria. This chapter aims at assessing the performance of Cameroon's financial system and outlining its main vulnerabilities and the challenges facing the conduct of monetary policy. It provides an overview of Cameroon's financial system through a detailed description of the evolution of its main components, as well as the monetary policy environment, over the past three decades. It then focuses on the performance of Cameroon's financial sector compared to other countries. Considering the unsatisfactory performance of the banking sector, especially in relation to the financing of economies, the chapter addresses the main impediments to the development of credit in Cameroon. Finally, the chapter deals with the macroeconomic vulnerabilities of the banking sector that could limit the transfer of monetary policy to the real sector. It also provides recommendations for enhancing the performance of this sector.
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