Congolese banks have been locked out from the global financial system due to worries around tax evasions (money laundering).
Democratic Republic of Congo’s new central bank governor Malangu Kabedi-Mbuyi has a tremendous burden on her head to transform the institution in the midst of difficulties being faced by the bank. Malangu Kabedi-Mbuyi who is a veteran of the IMF is the first woman to hold this position.
As the governor of the Banque centrale du Congo (BCC), the errand is to leave an imprint by changing the face of the bank.
The International Monetary Fund has over and over criticized the national bank of the Democratic Republic of Congo (DRC) for lacking self-sufficiency, transparency and important management capacities.
Malangu Kabedi-Mbuyi, who was designated in July as the new BCC governor, has been mandated to change the establishment, by upgrading money related strategy and smoothing out the financial sector.
Malangu Kabedi-Mbuyi has an outline of what should be done from the IMF and the 2018 Central Bank Law. Her appointment came only weeks after the IMF pushed for update of BCC initiative as a condition for the dispensing of a $1.5 billion financing package.
Among the main jobs is BCC recapitalization, with the objective being about $130 million, and dollarization, which keeps on hampering monetary policy. Additionally of concern is the BCC’s unbridled loaning to the government, which has dissolved foreign reserves.
In the financial sector, countless banks presently can’t seem to consent to IFRS bookkeeping principles. Several banks do not have the base capital prerequisite of $50 million.
With BIAC, the country’s fourth-biggest bank, in liquidation, the financial system is considered weak.
The whole financial sector is overwhelmed with a certainty emergency, and Kabedi-Mbuyi face the test of fixing it. Kabedi-Mbuyi took up the position from her predecessor, Deogratias Mutombo.
DRC craves financial innovations to drive inclusion. Mobile money and fintechs are taking off and venturing further into the positions of the unbanked.
Also, the DRC is drawing in considerable interests from Pan-African banks that see the nation as a to a great extent neglected development boondocks.