Businesses see surge in   bank lending in Q2 2023, despite BEAC’s tight policies

Banks and financial institutions operating in Cameroon provided businesses in the country with loans totaling CFA1,311.6 billion between April and June 2023. According to data from the Bank of Central African States (BEAC), this volume represents an increase of nearly FCFA424 billion (47.7%) compared to the same period in 2022, when businesses only received FCFA887.9 billion in bank loans. This significant rise in bank lending to businesses suggests that the restrictive monetary policy implemented by the central bank since 2022 to combat inflation in the CEMAC zone has been ineffective. Characterized by repeated increases in the central bank’s key interest…