Their capitalization is well below the average of banks in the CEMAC region and their profits are close to 2 percent, compared to 20 percent for foreign banks in the country. This is partially explained by the high levels of non-performing loans, which reached 12 percent in 2007, leading to most banks holding large amounts of excess reserves as a percentage of deposits and large levels of unutilized liquidity.
The capitalization of these banks is significantly lower than the average for banks in the CEMAC region, with profits hovering around 2%, compared to 20% for foreign banks operating within the country. This disparity is attributed to high non-performing loan rates, which reached 12% in 2007, resulting in most banks holding substantial excess reserves as a percentage of deposits and significant levels of unused liquidity.