The banking system of Liberia is a system of credit and financial institutions of the Republic of Liberia , consisting of the Central Bank of Liberia and commercial banks .
The banking system of Liberia is considered to be rather underdeveloped, although over the past 4 years (2008-2012) there has been some recovery in the financial sector (in particular, 4 new banks were opened during this period) due to the infusion of foreign investments, mainly from Nigeria . The Central Bank of Liberia, when regulating the banking sector, relies mainly on the Reserve Requirement Ratio, as well as on the βmoral impactβ. Other banking regulation tools are considered ineffective because the securities market is very poorly developed in Liberia. There is also no refinancing rate , since the Central Bank still serves as the last lender in critical situations. Recently, the Central Bank of Liberia raised the minimum level of bank capitalization from 6 to 10 million US dollars, which may prompt local banks to mergers and acquisitions .
All Liberian banks of African descent are not related to banks of world significance: they were established by residents of Nigeria, Ghana or Liberia itself. For this reason, the list of banking services they provide is small and includes only basic banking operations. The customer service is not distinguished by a high level. There are still no credit cards used. Only two operators operate in the money transfer sector: Western Union and MoneyGram .
List of commercial banks (for 2012)
| Name ( eng. ) | Established | Main activities | Ownership structure |
|---|---|---|---|
| Liberian Bank for Development & Investment (LBDI) | 1961 | development banking, commercial banking, payments, transfers Western Union | 18% of the Government of Liberia, 10.29% of the citizens of Liberia, 22.80% with local companies, 48.30% with foreign companies |
| Ecobank Liberia (Limited) (EBLL) | August 16, 1999 | commercial banking, Western Union transfers | 100% from foreign companies |
| International Bank Liberia (Limited) (IBLL) | April 2000 | commercial banking, Western Union transfers | 98.75% for non-residents , 1.25% for individuals |
| Global Bank (Liberia) Limited (GBLL) | February 4, 2005 | commercial banking, MoneyGram transfers | 100% Bank PHB |
| First International Bank Liberia Limited (FIBLL) | March 22, 2005 | commercial banking, MoneyGram transfers | 3% for private individuals of residents , 97% for private individuals of non-residents |
| United Bank for Africa Liberia Limited (UBALL) | July 17, 2008 | commercial banking, MoneyGram transfers | 100% for non-resident individuals |
| Accessbank Liberia The Microfinance Bank | January 20, 2009 | commercial banking, microfinance | 100% from foreign corporations |
| Guaranty Trust Bank Liberia (GTBL) | March 6, 2009 | commercial banking, Western Union transfers | 1% for private individuals of residents , 99% for private individuals of non-residents |
| Afriland first bank | March 10, 2011 | commercial banking | 5% for private individuals of residents , 95% for private individuals of non-residents |
Banking legislation
- The Central Bank of Liberia Act of 1999.
- The Financial Institutions Act of 1999.