Banks are working hard to regain people’s trust and encouraging the use of their services for both savings and enterprise.

One of the main challenges faced by the country’s central bank, in conjunction with its international partners such as the World Bank and the African Development Bank, is the recovery of people’s trust in the system and to keep the wheels of the economy rolling. Past years of conflict, political uncertainty, destruction of infrastructure, lack of data, and above all endemic poverty have resulted in a high percentage – up to 95 percent according to some sources – of financial and commercial transactions in the DRC taking place on an informal basis.

The banking sector in particular needs to work hard to regain its position in the country but reforms are taking place with encouraging signs in the sector with the arrival of foreign investors such as Citibank, Stanbic and Rawbank. Traditionally dominated by the cooperative movement, the number of these agencies had dwindled by the late 80s due to various reasons, including the freezing and loss of their investments into government bonds (decreed by the central bank in 1992 and never repaid). The formal banking sector was composed of under-capitalized yet over-liquid banks operating in a very tight market, with a low intermediation ratio of 14 percent and limited adherence to the BCC’s regulations.

The importance of a solid banking system in the country has by no means been overlooked by the government. A law for cooperatives was passed in 2002 and a banking law has been established that defines the legal status and obligations of all financial intermediaries. Plans for modernization for the future also include the introduction of automated teller machines. The BCC conducts its activities in the banking sector with other African central banks, particularly members of the Southern African Development Community (SADC), and is taking part in the project for the normalization and standardization of payment terms within the Southern African region. With these renewed dynamics, the banking sector is looking to a positive future.

One of the country’s oldest and most prestigious banks, which has maintained its position throughout the years, is the Banque Commerciale du Congo (BCDC). Providing both personal and corporate banking services, the BCDC, as well as the Banque Internationale pour l’Afrique au Congo (BIAC), have continued to invest despite the crises, introducing technological advances such as a satellite communications system and internet banking. BCDC includes among its clients the Central Coordination Office (BCECO), which works with the World Bank to manage foreign donor funds.

A newcomer to the banking scene, the Trust Merchant Bank opened in January 2005 in Lubumbashi and provides microfinancing as well as traditional banking services. According to Robert Levi, the bank’s CEO, Congolese businessmen are only now starting to deal with banks rather than keep their savings under the mattress. The process is a mutual education, and the traditional negative relationship between people and banks is being overturned.