Gambia: Central bank takes ‘full control’ of Nigerian-owned commercial banks

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.”

The Gambia: BANK PHB Renamed Keystone Bank

The Bank 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 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)

LICENCE REVOKED!

CBG Claims Bank PHB (Gambia) Ltd Is On Sound Footing

Bank PHB (Gambia) Limited

Sooner had the Nigerian-owned Platinum Habib Bank (Bank PHB) taken over by Keystone Bank Nigeria Limited on August 6, 2011 than the Central Bank of The Gambia (CBG) announced the change would have no bearing on the operations of its subsidiary in Banjul.

Bank PHB Nigeria Limited and two others (Afribank and Spring Bank) in Nigeria had their licenses seized, nationalized and taken over by the Central Bank of Nigeria (CBN) a fortnight ago, after it ruled that they were unable to raise the new capital requirement.