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| The CBG raised from D150 to D200 million, the minimum capital requirement for commercial banks operating in The Gambia. It is not clear if the two banks have fallen short of this regulation. Photo taken from Gambia.com |
The
Central Bank of The Gambia, CBG, Monday “take full control” of two
Nigerian-owned commercial banks, Access (Gambia) Ltd and Keystone (Gambia) Ltd.
CBG
announced it has exclusive powers to manage and control the two banks to ensure
that they “operate in a safe and sound manner” but it did not make clear the
reason behind the move.
The
May 5 decision was taken under the Banking Act 2009, according to the CBG which
states it wants “to safeguard the financial system in particular and the
economy in general.”
It
stated: “The two banks would continue business as usual, and depositors are
assured that the banks have ample liquidity to meet current and future
obligations.”
Last
year, the CBG raised from D150 to D200 million, the minimum capital requirement
for commercial banks operating in The Gambia. It is not clear if the two banks
have fallen short of this regulation.
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| The Bank was among 10 banks that failed the CBN’s “stress test” conducted in June 2009, a manifestation that they would have struggled to withstand another financial crisis. (Photo Credit: MSJoof/TNBES/August2011) |
Keystone
Bank, formally of Platinum Habib Bank (known as Bank PHB Gambia Ltd) opened for
operation in the tiny West African country in 2007.
Its
parent bank, formed in 2005 by the merger between Platinum Bank Plc and Habib Nigeria Bank Plc., had
its licence
seized in 2011 by
the Central Bank of Nigeria for failing to meet a new capital requirement.
The Bank was among 10 banks in Nigeria that failed
the CBN’s “stress test” conducted in June 2009, a manifestation that they would
have struggled to withstand another financial crisis.
Nigerian
authorities said it was “very obvious” the affected banks were having
difficulties pulling through the re-capitilaistion process and feared the banks
would “go under”.
Bank
PHB was taken over by Keystone Bank Nigeria Limited on August 6, 2011, and its
Gambia-based subsidiary only changed its name in September last year.
The
CBG in Banjul had claimed the change of ownership would have no bearing on the
Bank’s operations as it is a locally incorporated entity.
Keystone
Bank is a full service commercial bank with its head office in Lagos with over
200 branches in Nigeria and Africa.
Access
Bank (Gambia) Ltd began operations in The Gambia in October 2006. It is owned
75 per cent by the Access Bank Plc. in Nigerian and 25 per cent by Gambian
investors.
Written by Modou S. Joof
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