68 The banking sector in the Democratic Republic of the Congo (DRC) is facing potential challenges as a directive from the country’s central bank could necessitate the sale of up to 45 percent of their stakes within three years. As reported by Bloomberg, the directive, known as Instruction 18, requires each of Congo’s banks to have a minimum of four unrelated shareholders, with each holding at least 15 percent of the bank’s equity to mitigate risk. Six individuals familiar with the directive informed Bloomberg that the majority of Congo’s banks would need to divest a significant portion of their equity holdings by the year 2026. The Congolese Banking Association, representing the country’s 15 lenders, stated that its members are currently evaluating the directive “to ascertain the feasibility and implications of the proposed requirements.” Recent developments have seen Kenya’s largest banks, Equity Group Holdings Plc and KCB Group Plc, acquiring stakes in three Congolese lenders. While KCB and Equity declined to comment on the matter, Standard Bank mentioned that it was “engaging with the central bank, bankers’ association, and stakeholders regarding this recent directive.” Although some bankers expressed skepticism about the enforceability of the directive by the central bank, certain institutions are already taking proactive measures to comply with the order. Seyi Kumapayi, Executive Director for African subsidiaries at Access Bank Plc, stated that the bank is “studying the new regulation to ensure compliance well in advance of its effective date.” FBN Holdings Plc also affirmed its commitment to adhering to the regulations and stated that it is “exploring all available options.” Citigroup Inc., which maintains a small presence in Congo, and Rawbank SA, the largest lender in the country, declined to provide comments on the matter. You Might Be Interested In Farmers Insurance Appoints John Griek as Chief Financial Officer US Regulator Proposes Tighter Scrutiny for Bank Mergers Over $100 Billion CBUAE Reports UAE Financial System Reaches New Heights of Security and Efficiency CBE’s Measures to Correct Egypt’s Economic Path: Finance Minister Saudi Arabia’s PIF Asset Size Surges to $925.2 Billion Federal Reserve Ends Bank Term Funding Program