 |
| The Platinum Habib Bank, now renamed Keystone Bank, is one of 12 commercial banks operating in The Gambia (Photo Credit: MSJoof/TNBES/August2011) |
 |
| Closed in 2011 for failing to meet capital requirement |
The
South Africa-based GGA said the share of adults with bank accounts is tiny,
which is based on the latest figures available as of 2011.
It
quoted a survey by the World Bank which shows that in 40 of 42 countries; fewer
than half of adults had a bank account. Mauritius and South Africa were the
only two countries where more than 50% of adults had a bank account, at 80% and
54% respectively. Niger had the lowest proportion at 1.5%.
According
to GGA, more African adults borrowed from family or friends than from any other
credit source in 2011. On average, 35% of the adults in each country borrowed
money from a family member or friend, compared to only 5% who obtained loans
from a formal financial institution.
“Many
ordinary citizens could radically improve their lives with the help of small
loans,” said Karen Hasse, a GGA researcher. “The share of people borrowing from
family and friends indicates a high demand for credit services, and a wide-open
market for financial institutions to meet this demand.”
 |
| Closed in 2012 |
“I’m
employed, but my salary is not enough to meet the cost of my family needs. So,
I can’t save a butut [Gambia’s lowest
currency denomination] in a bank,” said hotel worker Musa Bah, 34.
“And
when I do not have a bank account and do not own properties, I simply cannot
borrow from any bank. I borrow from friends,” he added.
Economic and financial reporter, Lamin Jahateh, told TNBES despite the increase in commercial banks [12] in The Gambia, poverty would be the main cause for any low numbers in holders of bank accounts.
Close to 50 per cent of Gambia's 1.8 million population lives on less than US$1.25 a day, according to the 2010 Integrated Household Survey published by The Gambia Bureau of Statistics. A UNDP Final MDG Report 2013 states: “Poverty remains high and is far more severe in the rural than in the urban areas although urban poverty is also on the increase."
Economic and financial reporter, Lamin Jahateh, told TNBES despite the increase in commercial banks [12] in The Gambia, poverty would be the main cause for any low numbers in holders of bank accounts.
Close to 50 per cent of Gambia's 1.8 million population lives on less than US$1.25 a day, according to the 2010 Integrated Household Survey published by The Gambia Bureau of Statistics. A UNDP Final MDG Report 2013 states: “Poverty remains high and is far more severe in the rural than in the urban areas although urban poverty is also on the increase."
GGA is to hold a formal release of the 2014 Africa Survey on Tuesday, October 28, 2014 in South
Africa.
Good Governance Africa is a research organisation that promotes better
government management. Its main publications are the Africa Survey and Africa in Fact, a journal that tracks government
performance and proposes solutions.
Written by Modou S. Joof
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