ISSN (Online): 2321-3418
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Economics and Management
Open Access

Compliance Audit of Guaranteed Minimum Service Fees and Financial Reporting Transparency of Commercial Banks in Cameroon

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· Pages: 9975-9989· Vol. 13, No. 11, (2025)· Published: November 24, 2025
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Abstract

Despite the enactment of the Banking Commission for Central Africa's regulation No.R-2016/01, of April 4, 2016, and its reinforcement through regulations No. 01/20/CEMAC/UMAC/COBAC and Regulation No. R-2020/04 of October 8, 2020, transparency in banking service charges remains a persistent challenge   in Cameroon's commercial banking industry. Many bank staff and customers lack knowledge of which services are guaranteed free and which attract fees, leading to frequent misclassification of charges, weakened financial reporting and damaged public trust. This study empirically examined the inter-connection between intensity of compliance audit of guarantee minimum banking services (GBMS) as stipulated by COBAC regulation, and financial reporting transparency of Commercial banks in Cameroon. using a quantitative ex-post facto research design, panel data from ten purposively selected commercial banks between 2015 and 2024 were analyzed using Ordinary Least Square regression model. Empirical results indicate that robust compliance audit of GMBS proxied by salary domiciliation charges (B= 0.42, p< 0.001), monthly account statement charges (B=0.31, P<0.005), cheque payment and internal transfer charges (B=0.18, p<0.012), significantly enhance financial reporting transparency, the intensification of compliance audit through detailed, reasonable, descent and transparent reporting in salary domiciliation, monthly account statement, cheque payment and internal transfer charges amongst others, narrows the knowledge gap, mount pressure on regulators, instruments  of corporate governance and helps banks apply regulations more effectively and report accurately. The model explains 78% of the variation in financial reporting transparency, with no signs of multicollinearity (VIF <5), or autocorrelation (Durbin Watson =1.94). These findings grounded in financial intermediation and stakeholder theories, highlight the urgent need for better governance through robust compliance audit and clearer regulatory understanding. To build client trust and improve accountability, the study recommends strengthening staff training on COBAC provision for bank personnel, stricter COBAC oversight, improved audit systems, and mandatory itemized service charge disclosures and enhances consumer knowledge. Without these reforms, misclassification and confusion around banking fees will continue to undermine transparency and confidence in Cameroon financial institutions. The study offers critical insights for policymakers, professional accountants, and financial institutions seeking to reinforce governance, enforce service classification standards, and restore public confidence in the Cameroon banking industry.

Keywords

Compliance AuditGuaranteed Minimum Banking ServicesFinancial Reporting

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Author details
Ndipeta Takobesong EgbeAya Lot
Department of Accounting, Faculty of Social and Management Sciences, University of Buea
✉ Corresponding Author
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Visemih William Mufee
Professor of Accounting and Finance, Faculty of Social and Management Sciences, University of Buea
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Valentine Ojong Oben
Department of Accounting, Faculty of Social and Management Sciences, University of Buea
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Agbor Louis Tabot Ntong
Head of Department, Accounting, Faculty of Social and Management Sciences, University of Buea
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