The BEAC Central Bank and Wealth Creation in Cameroon Economy

The purpose of this paper was to assess the impact of BEAC's financing on wealth creation in the Cameroon economy. BEAC is a central bank of the six States of the Central Africa. They are Cameroon, Central Africa Republic, Congo-Brazzaville, Chad, Equatorial Guinea and Gabon. The recovery of the Cameroon economy after the economic crisis of years 1980 and 1990 led to question the role played by BEAC central bank in that attainment. The data used in the study were secondary and were collected from Franc currency zone annual reports of 'Banque de France' on Cameroon from the year 1990 to 2011. OLS regression equations, means and variances were used to explain this impact. The descriptive results revealed large variations of standard deviation values from the means. The OLS results in return showed that BEAC's financings affect negatively wealth creation in the Cameroon economy. In other words, wealth creation is significantly negatively affected by BEAC's financings to the banking system for the physical and financial wealth, while negatively affected by BEAC's financings to the government for the financial and human wealth. In order for BEAC to increase the wealth creation in Cameroon economy, it must provide productive loans directly to economic agents through their unions and long-term loans to commercial banks to finance the economy and boost consumption.