A new framework for the protection of depositors in the CEMAC region

Through three legal instruments—namely, Regulation No. 03/25/CEMAC/UMAC/COBAC of October 8, 2025, concerning the Deposit Guarantee Fund in Central Africa; COBAC Regulation R-2025/03 of December 13, 2025, regarding the organization and operation of the Deposit Guarantee Fund in Central Africa; and COBAC Instruction I-2025-02 concerning the implementation of depositor compensation by the Deposit Guarantee Fund in Central Africa (FOGADAC)—the regional authorities have recently established a framework for the protection of depositors in Central Africa.

This new framework replaces the previous one, which consisted of two legal texts: Regulation No. 01/19 of April 20, 2009, establishing the Deposit Guarantee Fund in Central Africa, and Regulation R-2009/03 of December 15, 2009, governing the organization and operation of the Deposit Guarantee Fund in Central Africa. More than 15 years after their adoption, it has become clear that the FOGADAC has struggled to fulfill its role of protecting depositors in the event of a bank failure. This new framework is therefore intended to provide fresh momentum for the protection of depositors.

The activities of FOGADAC are primarily focused on compensating depositors; however, the fund also serves to support credit institutions that are in distress or undergoing resolution.

Regarding the compensation of depositors, FOGADAC is responsible for ensuring that depositors receive their guaranteed payouts once their deposits become unavailable. To this end, various legal texts define the rules for collecting and managing the fund’s resources, while also establishing the procedures for depositor compensation and the fund’s preventive interventions. Specifically, the fund is tasked with compensating depositors for the value of their eligible deposits. Eligible deposits include those held by legal entities and individuals, consisting of credit balances remaining in their accounts. These deposits are guaranteed up to a maximum limit of 8,000,000 CFA francs for individuals and 15,000,000 CFA francs for legal entities. This limit applies to the aggregate of a depositor’s eligible deposits and other assets held at a single credit institution (excluding microfinance or payment institutions). The compensation process must be completed within two months of the request for intervention, subject to a potential extension of an additional two months.

Depositors have the right to appeal decisions before the Court of Justice of the CEMAC.

In terms of preventive intervention, FOGADAC operates within the framework of restructuring plans for credit institutions that have been approved by COBAC.

To ensure compliance with these provisions, sanctions are established not only for credit institutions but also for individuals who fraudulently obstruct the actions of FOGADAC. It is high time that the FOGADAC finally fulfills its role as a backstop for credit institutions in difficulty.