What is a credit union?
A credit union is a member-owned financial cooperative that collects savings from members and provides loans to them at reasonable interest rates. It operates on cooperative principles, focusing on serving members rather than maximizing profits. In the context of Cameroon, credit unions are classified as category 1 microfinance institutions.
How do credit unions differ from commercial banks?
Credit unions are nonprofit and member-owned, focusing on serving members’ financial needs at low cost, whereas commercial banks are profit-driven institutions owned by shareholders. Credit unions emphasize democratic governance and community benefit. Moreso, all credit union members are shareholders.
How are credit unions governed?
Credit unions are democratically controlled by their members, with each member having one vote regardless of the amount of capital contributed or savings mobilized. They are managed by a board of directors elected by members during annual general meetings, along with the supervisory board overseeing their operations.
What is RECCU-CAM?
RECCU-CAM (Renaissance Cooperative Credit Unions in Cameroon) is a vibrant network that effectively supports the microfinance industry in Cameroon. They facilitate the creation of an enabling environment for the development of a sustainable microfinance institution category onethrough participation of all stakeholders.
How are credit unions regulated in Cameroon?
Credit unions in Cameroon are regulated following Cooperative Laws overseen by the Ministry of Agriculture and Rural Development (MINADER), the OHADA Uniform Act relating to the Law of Cooperative Societies, and byelaws of the network. They also comply with financial regulations from the Ministry of Finance (MINFI) and the Banking Commission of Central Africa (COBAC).
What are the membership requirements to join BamCCUL?
Membership is typically based on a common bond such as occupation, residence, religion, tribe, or affiliation. Members pay a registration fee of 1,000 FCFA, acquire a minimum of 50 shares worth 50,000 FCFA, solidarity fund of 10,000 FCFA, building reserves of 10,000 FCFA, and stationery at 1,500 FCFA to join. Note, only shares are refunded during a member’s withdrawal.
What services does BamCCUL provide?
We provide current accounts, savings accounts, loans, internal remittances, e-cash, financial education, and community development support. We also operate internal insurance schemes for members and collaborate with other financial institutions within the network to enhance services.
How does RECCU-CAM support credit unions in the network?
RECCUCAM, the apex organization, provides expert advice to affiliate credit unions, managesthe network's relationships with external parties, oversees financial stability, and enforces disciplinary actions according to COBAC regulations and network bylaws.
What role does BamCCUL play in financial inclusion in Cameroon?
BamCCUL has ten (10) widespread branch offices located in six (06) regions of Cameroon that provide accessible financial services to underserved populations, especially in rural and low-income communities. They promote savings mobilization, affordable credit, and community development.
How does BamCCUL contribute to community development?
BamCCUL promotes economic empowerment by supporting small business owners, common initiative groups involved in agricultural development, and financial literacy programs within their communities.