To determine the systemic importance of institutions subject to weightings will be applied to each indicator used to identify systemic importance.
Each institution is assigned a score for each of the criteria and indicators, taking into account their relative weight in the banking system.
The scores obtained are then weighted and added together to obtain the final score.
Systemic Importance is established from the distribution of the scores. Three levels of systemic importance are thus determined: high systemic importance, medium systemic importance and low systemic importance.
Once a year, the Banking Commission draws up a list of systemic important institutions, indicating the level of systemic importance for each institution.
The Secretariat General of COBAC shall notify this decision to the institutions concerned and to the monetary authorities of the CEMAC States, with a copy to the Bank of Central African States and the Central African Financial Stability Committee. The decision adopting the list of systemic important institutions is published.
When the subsidiary of a foreign banking group is qualified as being of systemic importance in the CEMAC, the Secretariat General of COBAC informs the banking supervisor of the country of origin or the jurisdiction where the head office of the group concerned is located of the systemic nature of the group in question, as well as the additional requirements to which it will be subject.
An Instruction from the Chairman of COBAC sets out;
- The composition of the various criteria for identifying systemically important institutions, the weightings and the methods for calculating of the scores;
The thresholds for defining the different levels of systemic importance.