(Business in Cameroon) – Commercial banks in the CEMAC zone are showing a strong demand for liquidity following the recent easing of monetary policy. The Bank of Central African States (BEAC), the central bank for these six nations, cut its key interest rate by 0.5%.
On June 3, 2025, the BEAC offered 420 billion CFA francs in liquidity, which was oversubscribed by commercial banks. Nine credit institutions participated in the operation, submitting requests totaling 427 billion CFA francs, exceeding the available amount by 7 billion CFA francs.
This surge in demand for BEAC liquidity by commercial banks indicates an increased need for bank credit within the sub-region. According to bankers, reliance on central bank refinancing typically signals that banks’ available funds are insufficient to meet the credit demands of businesses and individuals.
However, it is currently unclear whether the BEAC’s rate cut, intended to both facilitate bank refinancing and lower overall lending rates, is effectively impacting borrowing costs in the sub-region.
BRM