Conditions for the Licensing of a Banking Financial Institution
Law n°003/2002 of02 February 2002 relating to the activity and control of Credit Institutions
- Se Incorporate regularly as a public limited company in accordance with the law of OHADA;
- Proof of a minimum subscribed and paid-up capital of the equivalent in Congolese Francs of USD 30,000,000 (thirty million dollars).
According to the letter of 30 September 2016 from the Governor of the Central Bank of the Congo, the following should be noted:
- Active banks, whose core capital as defined by the Central Bank of Congo is below this minimum capital, have a period of twelve (12) months to increase the said funds to the required regulatory level;
- Licensed banks not yet in operation due to start-up formalities have a twelve (12) month period to adjust the minimum paid-up capital to the required regulatory level, from the start of their activities;
- The level of the minimum capital is set, as of December 31, 2020, at the equivalent in Congolese Francs of USD 50,000,000 (US Dollars fifty million).
- Meet a general or local economic need.
Conditions relating to executives
No person may establish, administer, direct or manage a bank in any capacity if he has been :
- Sentenced for an infringement of Law n°003/2002 of February 02, 2002 or the exchange regulations;
- Declared bankrupt and has not been rehabilitated, even when the bankruptcy opened in a foreign country;
- Sentenced in the Congo or abroad to a custodial sentence of at least three months’ imprisonment, even on parole, as perpetrator or accomplice in the commission or attempted commission of one of the following offences:
- Counterfeit money;
- Counterfeiting or falsification of banknotes of public effects, bonds, interest coupons;
- Counterfeiting or falsification of seals, stamps, hallmarks and marks; forgery and use of forged writing;
- Corruption of public officials or bribery;
- Theft, extortion, embezzlement, misappropriation or breach of trust, swindle or fraud;
- Bankruptcy; fictitious circulation of negotiable instruments;
- Money laundering
- Convicted of common crimes and offences assimilated by law to those listed above;
- if he has taken part in the administration, management or day-to-day management of a Credit Institution which has been ordered to be compulsorily dissolved or declared bankrupt.
Documents or Elements of the file to be transmitted to the Central Bank of the Congo
- The letter of request for approval to be addressed to the Governor of the Central Bank of Congo;
- The resolution of the constituent general meeting of the company;
- The trade and personal property credit register;
- The national identification number;
- The resolution of the extraordinary general meeting of the associates of the legal entities shareholders of the new bank authorizing them to take part in the capital of the future bank;
- The original notarized articles of association of the new company;
- Proof of payment of the minimum capital required (certificate from a local or foreign bank acknowledging having received in deposit the above-mentioned amount of capital with a view to creating the envisaged bank);
- The list of shareholders;
- The composition of the Board of Directors and of the Management Committee of the Bank being created, as well as the curriculum vitae and extracts from the criminal records of the members and individual shareholders;
- The certified financial statements for the last three financial years of the legal entity shareholders;
- Location and organization forecasts;
- A statement of the general policy that the Bank intends to apply;
- A feasibility study including business forecasts supported by balance sheets and projected operating accounts over a minimum period of 5 years showing the profitability of the project;
- Details of the technical and financial resources that the Credit Institution intends to implement.
It should be noted that, in addition to the conditions listed above, approval is subject to the Central Bank of Congo obtaining a favorable opinion from the Supervisory Authority of the country of origin of the parent company or the main promoters in the case of banks with foreign capital.
Furthermore, the Central Bank of Congo, through its banking supervisory body, reserves the right to demand any other element or information likely to enlighten its decision.
Source: Central Bank of Congo / DRC