Objective: The paper aim to determine the role play by banking sector stabilization policies over the relationship between financial sector development and monetary stability objective. Methodology: The data used comes from World Bank (WDI, 2021) and Centrale Bank of African states (BEAC). The study covers the period 2000-2018. Following inflation equation constructed by Gallic and al (2017), it has been calculated through generalised method of moments (GMM) system of Blundell and Bond (1998). Results: The undesirable effects of financial sector development (credit risk) increase inflation rate in CEMAC. Besides, the negative relationship between financial sector development and the objective of monetary stability quoted in literature is not reversed in CEMAC. While the banking sector stabilisation policy stabs to reduce negative influence of adverse effects financial sector development on monetary stability objective, its effect remains low Originality/relevance: This analysis highlighted factors hindering monetary stability objective of from two aspects (determinants of monetary instability and influence of the undesirable effects of financial sector development). The credit risks, the main cause of monetary instability and the main undesirable effects of financial sector development, increase the inflation rate in CEMAC. Therefore, policy makers need to curb any increased of credit risks associated with financial sector development as this risk increase inflation in CEMAC.