As announced, the deputies held this Monday, April 29, 2024 under the leadership of President Louis G. VLAVONOU, a plenary session during which, three (03) of legal texts out of the seven (07) on the agenda , were examined and adopted unanimously by the elected officials present and represented.
The first text of law examined is the bill relating to banking regulation in the Republic of Benin
According to the content of the GBÉNONCHI Commission report to which colleague Affissou ANONRIN had access, the main structural innovation of the revision of the banking law concerns the enactment of a single legal act organizing all aspects relating to status of the establishment governed by this law, from access to exit from this status via the applicable control regime.
The law examined and adopted this Monday, April 29, 2024 now governs five categories of establishments compared to two for that in force, Law No. 2012-24 of July 24, 2012.
The new law which now regulates the banking sector aims to govern the establishment, exercise of activity and control of obliged entities operating in the territory of the Republic of Benin, their resolution as well as their liquidation. .
It specifies the regime applicable to all the banking establishments concerned, namely:
- credit institutions, in this case banks and financial credit institutions;
- payment institutions;
- electronic money institutions;
- bank holding companies and financial companies.
Adopted under No. 2024-14, the Law regulating banking in the Republic of Benin is structured into 12 titles and 258 articles divided into 30 chapters.
Factoring activity
According to the content of the related report and relayed by colleague Affissou ANONRIN, this law aims to promote the development of factoring as a financing offer adapted to the cash flow problems of companies and individuals, small and medium-sized businesses. . It has several advantages, in particular the security and financing of the customer position which constitutes one of the main concerns of companies.
Asked to comment on the text of the law relating to factoring, the deputies emphasized the need to inform national companies about factoring activity; details on support structures specializing in the drafting of business contracts…
It was adopted under the title: Law No 2024-16 relating to the factoring activity in Benin.
Definition of usury and its repression in the Republic of Benin
For the third and final text of law examined by the deputies this Monday, April 29, 2024, the law relating to the definition and repression of usury, it is a transposition of community provisions into the internal legal order of Benin and includes 14 articles divided into 03 chapters.
Essentially, we will now remember that “ The usury rate in the Republic of Benin is set at 18% for banks and 27% for decentralized financial systems. ».
While appreciating the relevance of this law, the deputies nevertheless pleaded for its broad popularization in order to protect from danger several actors in rural areas who practice usurious rates often in conflict with the law.
The law defining and punishing usury in the Republic of Benin was adopted under number No. 2024-15.
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