Nov 26, 2014, 9:42 AM
The Central Bank of The Gambia (CBG) is on the verge of opening a branch in the provinces to meet the immediate needs of branches of commercial banks in the rural areas.
“Plans to open a Central Bank of The Gambia branch close to branches of commercial banks in the rural towns are far advanced,” said the CBG’s 1st Deputy Governor Bashiru Njie.
“This would help to reduce the cost of transporting cash,” he added.
The Central Bank of The Gambia is unreservedly committed to the deepening of the banking sector and addressing market inefficiencies cited by commercial banks for the high lending rates, says Mr Njie.
He notes: “Low inflation is possibly the most crucial prerequisite for effective and efficient resource mobilization and allocation of credit.”
The CBG believes in adhering to the precepts of sound economic management to sustain macroeconomic stability.
Credit Reference Bureau
The CBG also plans to upgrade the Credit Reference Bureau set up to gauge banks’ clients’ credit positions and worthiness, with respect to loans and advances given to clients.
“Furthermore, the Credit Reference Bureau would be upgraded to better provide the information needed for accurate and timely credit risk analysis,” the CBG 1st deputy governor stated, adding that the Payments System Development Project, expected to be up and running in the early part of 2012, would help to reduce or eliminate settlement risks.
A registry on matters of collaterals will also be established by the CBG to boost the mechanism for credit agreements and reduce risk on creditors.
Deputy Governor Njie said: “To improve the mechanism for enforcing credit agreements and to reduce risk premium leaders slap on creditors, the Central Bank of The Gambia is looking into the feasibility of establishing a collateral registry.”