The Governor of Central Bank of The Gambia (CBG), Amadou Colley has revealed plans by the government to craft a new legislation to attract more non-banking financial institutions to operate in the country free from administrative red-tape. Governor Colley made the statement in his keynote address on the observance of Bankers Day organized by the Bankers Association.
According to Colley, an increase in the number of commercial banks and financial institutions in The Gambia will greatly contribute to the economic advancement of the nation. He said the number of commercial banks operating in the country has increased from 5 in 2005 to 12 in 2015. More so, assets, deposit liabilities and private sector credit as a percentage of gross domestic products (GDP) rose from 42%, 25% and 12% in 2000 to 82.9, 53.6, and 24.2% respectively in 2011.
The CBG boss however said his bank will not rest on its laurels but will instead continue to provide a level playing field for banks and financial institutions and attracts others from abroad.
The event was punctuated with a presentation of awards to outstanding banks and was graced by the Gambian Chief Justice, cabinet ministers, managers and representatives of all commercial banks.
The Gambia Financial System has evolved rapidly over the last several years, and is markedly liberalized now. Most interest rates are freely determined, direct controls have been eliminated, exchange controls abolished and the country has moved to indirect system of monetary controls using open market operations. These measures increased competition in the domestic financial system.
As a result of developments and policy practices changes in the legislation have also taken place. The Financial Institutions Act (FIA), Central Bank Act (CBG Act) has been revised. The FIA Act 2003 has been enacted while the CBG Act 1992 is almost in its final stage of revision. The Insurance Act 2003 and the Money Laundering Act 2003 have also been enacted.