Overview of the Financial Sector

The Gambia's financial system includes commercial banks, non-bank financial institutions (NBFIs), insurance companies, and pension funds, with the Central Bank as the main regulator. However, pension services provided by the Social Security and Housing Finance Corporation (SSHFC) and GAMPOST, which offers post office financial services, fall outside the Central Bank's oversight. Commercial banks dominate the sector, offering savings, loans, money transfers, and foreign exchange, with 12 banks and about 90 branches nationwide. Microfinance institutions also play a key role, especially for low-income groups, operating around 30 branches.

As of end-2023, The Gambia’s financial sector remains heavily dominated by the banking industry, which accounted for 89.7% of total sector assets. This marks a slight decline from 95% recorded at the end of 2022 and 2021, reflecting gradual diversification within the sector. Non-bank financial institutions held a 7.7% share in 2023, increasing from 3% in 2022 and 2021, while the insurance sector contributed 1.1%. Emerging segments, including mobile money and fintech services, as well as forex bureaus, accounted for 1.0% and 0.5% of total assets, respectively. Notably, these figures exclude assets held by pension funds and GAMPOST services. The modest expansion of non-bank and digital financial services underscores ongoing efforts to broaden financial inclusion and deepen market development in The Gambia.

The country has roughly 133 ATMs, mostly in urban areas. Despite challenges like limited access to finance and low financial literacy, the sector has remained resilient through recent global shocks. Financial institutions maintain solid capital and liquidity, with future growth expected from the expansion of digital finance and microfinance.

The depth of Gambia's financial sector, measured by domestic credit to the private sector as a percentage of GDP, has shown a general upward trend from 2019 to 2022 before experiencing a slight decline in 2023. From 2019 to 2020, both indicators remained relatively stable, with total domestic credit to the private sector at 8.2% of GDP and bank credit slightly lower at 7.6% and 7.7%. Starting in 2021, both measures began to rise, reaching a peak in 2022. Total domestic credit to the private sector climbed to 9.6% of GDP, while bank credit reached 9.2% of GDP, reflecting stronger credit growth during this period, possibly due to economic recovery, improved credit demand, or policy support following the pandemic.

However, in 2023, both indicators experienced a modest decline: total domestic credit to the private sector decreased to 8.7% of GDP, and bank credit dropped to 8.5% of GDP. This may suggest tighter lending conditions, weaker credit demand, or other macroeconomic factors influencing the financial sector’s lending capacity.

Throughout the entire period, banks have consistently provided the bulk of credit to the private sector, accounting for the majority of domestic credit, though the gap between total credit and bank credit suggests a small but stable role played by non-bank financial institutions.

Banking Sector

The Gambia's banking industry is made up of 12 institutions, which are classified into large, medium, and small categories according to the size of their assets. The two largest banks account for 37.3% of the sector's total assets. A single medium-sized bank contributes 15.1% to the overall assets. The remaining nine smaller banks collectively hold 47.6% of the industry's total asset base.

Banking Sector Assets and Liabilities

Between 2019 and 2023, The Gambia's banking sector demonstrated consistent growth and resilience. The total asset base of the industry expanded from D58.8 billion (USD 1.135 billion) at the end of 2020 to D86.5 billion (USD 1.285 billion) by December 2023, marking steady year-on-year increases driven largely by investments in government securities, private sector credit, and placements. In 2023 alone, total assets grew by 10%, reflecting banks’ sustained expansion and portfolio diversification.

Government securities have become a dominant component of banks' asset portfolios, comprising 30.9% of total assets in 2023. This highlights the banking sector’s increasing preference for low-risk government securities. Investments in government papers rose by 3.0% to D26.7 billion (USD 396.73 million), with treasury bills accounting for 58.7% of these holdings, other government securities 40.7%, and parastatal debt securities making up 0.6%.

The sector's capital position remained robust throughout the period. Capital and reserves increased steadily from D7.1 billion (USD 137.07 million) in 2020 to D10.2 billion (USD 151.56 million) by the end of 2023, supported primarily by higher retained earnings and statutory reserves. All twelve banks consistently met or exceeded the minimum capital requirement of D200 million (USD 2.97 million), with Tier 1 capital comprising 81% of the industry’s total capital and reserves as of 2023. The risk-weighted capital adequacy ratio stood at 24.8%, reflecting the sector’s strong buffer against potential losses.

Customer deposits continued to serve as the primary funding source for the industry, accounting for the majority of banks' liabilities each year. In 2023, customer deposits reached D58.7 billion (USD 872.21 million), representing 67.9% of total liabilities and growing by 8.7% compared to the previous year. Growth in demand and savings deposits stood at 3.7% and 5.7%, respectively, while time deposits declined by 8.3% due to their relatively higher cost. Similarly, in 2021 and 2022, deposits accounted for 77.2% and 69.8% of liabilities, respectively, with consistent annual growth recorded.

Banking sector soundness

Throughout these years, the banking sector maintained strong financial soundness, supported by solid capital buffers, improved asset quality, and prudent risk management. The sector demonstrated its resilience even amid external shocks, consistently posting healthy capital growth and stable liquidity positions.

Between 2019 and 2023, The Gambia’s banking sector exhibited strong capital positions and resilience, as reflected in the capital adequacy ratio (CAR), which remained well above international minimum standards throughout the period. The CAR peaked at 32.6% in 2020, indicating strong capital buffers capable of absorbing potential losses, before gradually declining to 24.8% in 2022, likely due to changes in risk-weighted assets or expansion in lending activities. However, by 2023, the ratio recovered to 28.6%, demonstrating the sector’s ongoing financial strength. This stable capital position ensured that banks could continue supporting economic activities while maintaining sufficient safeguards against unexpected shocks.

The quality of banks' loan portfolios also improved significantly over the five-year period, as evidenced by the steady decline in the non-performing loans (NPL) ratio from a peak of 6.8% in 2020, likely influenced by the economic disruptions of the COVID-19 pandemic, to just 3.3% in 2023. This consistent improvement reflects better credit risk management, more cautious lending practices, and improved borrower performance. Liquidity levels, which remained exceptionally high above 90% from 2019 to 2021, saw a temporary decline to 63.7% in 2022, possibly as banks increased lending and investments. Nevertheless, liquidity recovered to 82.3% in 2023, ensuring that banks maintained sufficient liquid assets to meet their obligations.

Profitability indicators also showed marked improvements over the period. Return on assets (ROA) remained stable around 1.8%-1.9% from 2019 to 2021, but rose to 2.5% by 2023, indicating that banks became more efficient in utilizing their assets to generate income. Similarly, return on equity (ROE) increased steadily from 15.28% in 2019 to 21.7% in 2023, reflecting stronger returns to shareholders and more effective use of capital. Altogether, the banking sector's performance between 2019 and 2023 highlights its resilience, growing profitability, improved asset quality, and stable capital and liquidity positions, positioning it well to support continued economic development in The Gambia.

Digital Finance and Financial Inclusion

Mobile money is steadily reshaping the financial inclusion landscape in The Gambia, offering simple, affordable, and secure financial transactions. Although still relatively small, the sector has experienced rapid growth in both customer adoption and transaction volumes over recent years. Initially, the market was served by two licensed Mobile Money Operators (MMOs), Afrimobile Money and QMoney Financial Services. However, the sector has since expanded to include a third operator, Monty Mobile Money Services (Comcach), reflecting growing competition and market interest.

Between December 2020 and December 2021, the number of active mobile money users surged by 94 percent, reaching 57,604 from 29,728. Despite the growth in users, both the total electronic value held in agents' wallets and cash-in transactions declined during this period—by 4 percent and 21 percent respectively—mainly due to limited interoperability between providers and stiff competition from commercial banks' internet banking platforms.

The sector continued to expand between 2022 and 2023. By December 2023, active mobile money users increased by 8.6 percent to 121,841, up from 112,157 a year earlier. This rise was driven by greater acceptance of mobile money among individuals and businesses seeking alternative transaction methods. Cash-in transactions grew significantly by 30 percent, reaching D104.93 million (USD 1.6 million) in December 2023 from D80.5 million in 2022 (USD 1.3 million). Total transaction values (combining cash-in and cash-out) rose by 22.6 percent to D153.7 million (USD 2.28 million), up from D131.1 million (USD 2.12 million) the previous year. The growth in transaction volumes and electronic balances was largely supported by the increasing adoption of mobile payments and money transfer services. Even though the Gambia's mobile money sector is still emerging, it has demonstrated strong potential to advance financial inclusion and is increasingly seen as a key platform for delivering financial services.

In January 2021, the Central Bank of the Gambia (CBG), in collaboration with key stakeholders, launched the National Financial Inclusion Strategy (NFIS) 2021–2025, with an ambitious goal of increasing the national financial inclusion rate from 19% to 70% by 2025. The strategy is built on five core pillars: enhancing access, quality, and usage of financial services; developing enabling financial infrastructure; promoting financial innovation and digital services; improving financial literacy; and strengthening consumer protection and empowerment.

Recognizing the transformative role of technology, the NFIS emphasizes financial innovation, particularly the potential of mobile phones and digital financial services such as mobile money to reach underserved populations. This approach aims to create a more inclusive financial system, especially for those in rural and remote areas who are often excluded from traditional banking networks.

To support this, the CBG has prioritized modernization of national payment systems, including significant upgrades to its payment infrastructure and GAMSWITCH, the national payment switch. These reforms aim to enhance efficiency, security, and interoperability. Additionally, The Gambia has joined the Pan-African Payment and Settlement System (PAPSS), enabling smoother and more cost-effective cross-border transactions with regional partners. Four commercial banks have already integrated with PAPSS, and three others are in the process.

Agency banking has emerged as a key solution to bridging the rural-urban divide in financial access. The CBG has issued agent network licenses to a variety of financial institutions—including banks, microfinance providers, and forex bureaus—encouraging wider outreach through non-branch-based models. Efforts have also been made to improve data collection and monitoring, with the introduction of specialized reporting templates for Mobile Money Operators (MMOs). These tools capture user demographics, geographic distribution, and usage patterns, enabling better policy responses.

On the regulatory front, the Bank has developed a Draft Gender-Sensitive Consumer Protection Framework, aiming to strengthen legal protections for users inclusively and equitably. This initiative aligns with the NFIS’s focus on empowering all segments of society, particularly women and marginalized communities.

Institutional governance is central to the strategy’s implementation. A high-level national steering committee, chaired by the CBG Governor and comprising key ministries (e.g., Finance, Trade, Youth, Gender) as well as financial sector associations (Bankers' Association, Insurance Association, NACCUG), has been established to drive accountability and coordination.

A midterm evaluation of the NFIS was planned in 2023, contingent on funding, to assess progress and adjust policies accordingly. The NFIS represents a comprehensive and technology-forward roadmap to extend inclusive financial services across The Gambia, with strong institutional backing and a clear focus on both infrastructure and social equity.

According to the Findex data, between 2017 and 2022, The Gambia made steady but modest progress in financial inclusion. Account ownership increased for both men and women, with a slightly faster pace for men. Digital payment usage is growing, but remains an area with substantial room for further expansion, especially as digital financial services continue to develop. The data reflects both progress and ongoing challenges in achieving the ambitious NFIS 2025 target of 70% financial inclusion.

Non-Bank Financial Institutions

The Gambia's non-bank financial sector includes microfinance institutions, credit unions, insurance companies, and pension funds, providing financial services beyond traditional banking. Microfinance and credit unions play a key role in promoting financial inclusion, particularly for low-income groups. The insurance sector remains small but is growing, offering a range of life and general insurance products. Pension funds continue to expand, supporting long-term savings and retirement security. Overall, NBFIs contribute to diversifying the financial sector and supporting economic development, though they face challenges related to regulatory capacity, supervision, and market development.

The Gambia’s Non-Bank Financial Institutions (NBFIs), supervised by the Central Bank under the NBFI Act of 2016, consist of seven finance companies (five conventional and two Islamic microfinance institutions) and 56 credit unions. These institutions cater to the low-income and informal sectors, which are often underserved by banks. As of December 2023, finance companies held D3.8 billion (USD 56.46 million) in assets, maintaining robust capital and liquidity positions, although asset quality slightly exceeded benchmarks. Deposits increased by 25% to D2.7 billion (USD 40.11 million), while loans rose modestly, primarily supporting SME trading. Credit unions, which serve over 109,000 members, expanded their assets by 35% to D3.7 billion (USD 54.98 million), with deposits totaling D2.5 billion (USD 37.147 million) and loans increasing sharply by 63% to D2.47 billion (USD 36.7 million). The largest 12 credit unions control the majority of the sector’s assets and are directly regulated by the Central Bank.

Fintech Developments

Fintech in The Gambia has grown steadily in recent years, supported by rising mobile phone usage, internet access, and demand for digital financial services. While the sector was initially led by mobile money operators offering payments and transfers, it has diversified to include digital wallets, payment aggregators, and remittance services. As of end-December 2023, seven fintech companies were licensed, six of which are newly registered and yet to begin operations. The total asset size of the sector declined from D784.15 million (USD 12.69 million) in 2022 to D644.83 million (USD 9.58 million) in 2023. The Central Bank continues to strengthen regulatory frameworks to balance innovation with financial stability, consumer protection, and AML/CFT compliance. Fintechs play an increasingly important role in promoting financial inclusion, particularly for unbanked and underserved populations, contributing to a more dynamic and accessible financial system.

Insurance Sector

The insurance sector in The Gambia remains small, accounting for approximately 1% of the country’s total financial sector assets as of 2023. It comprises 14 insurers, including 4 Takaful (Islamic) operators, with 10 providing non-life and 4 offering life insurance services. The market also includes 9 brokerage firms, over 160 agents, and around 49 branches nationwide. Currently regulated by the Central Bank under the Insurance Act 2003 and related amendments, plans are underway to establish an independent supervisory authority. Ownership of the industry is evenly split between domestic and mixed foreign interests.

The Gambia’s insurance industry, while relatively small, has demonstrated steady growth from 2019 to 2023. Total assets increased from approximately D685.7 million (USD 13.47 million) in 2019 to D1.1 billion (USD 16.345 million) by the end of 2023. Liabilities grew more gradually in the earlier years, from D240.8 million (USD 4.64 million) in 2020 to D281 million (USD 4.55 million) in 2022, before sharply rising to D457 million (USD 6.79 million) in 2023, driving net assets from D350.4 million in 2019 (USD 6.88 million) to D562 million in 2023 (USD 8.35 million).

Premium income reflected a similar upward trend, growing from D435.8 million (USD 8.4 million) in 2020 to D613 million in 2023 (USD 9.11 million), with non-life insurance consistently contributing around 75% of total premiums while life insurance and long-term business accounted for the remaining 25%. The Takaful (Islamic insurance) segment has steadily expanded since its introduction in 2008, with premiums rising from D92 million (USD 1.75 million) in 2021 (19.2% of total premiums) to D126 million (USD 1.87 million) in 2023 (21%). The sector also benefited from the licensing of new Takaful insurers between 2021 and 2023.

Claims paid increased alongside growth, reaching D116 million (USD 2.21 million) in 2021, up 17.2% from the previous year, and maintaining this upward trajectory. The life insurance sector experienced some fluctuations, partly due to the COVID-19 pandemic's impact, but overall, major players like Enterprise Life Assurance Company have helped drive growth. Despite these positive trends, insurance penetration remains low, consistently around 0.2–0.4% of GDP during the period, reflecting ongoing challenges related to low public awareness and income constraints, which continue to limit broader sector development.

Social Security System

The Gambia has two main pension schemes managed by the Social Security & Housing Finance Corporation (SSHFC): The Federated Pension Scheme (FPS) and the National Provident Fund (NPF). The FPS is a defined benefit scheme, providing a regular monthly income on retirement, while the NPF is a defined contribution scheme, where benefits are paid out as a lump sum, though a portion can be converted to an annuity.

From 2019 through 2023, The Gambia’s pension sector, managed largely by the Social Security and Housing Finance Corporation (SSHFC), which oversees the National Provident Fund (NPF), Federated Pension Scheme (FPS), and the Industrial I-njuries Compensation Fund (IICF), has demonstrated steady growth in assets and operational improvements. As of 31 December 2021, the FPS alone had total assets of approximately GMD 2.8 billion (USD 53.47 million), up from GMD 2.58 billion (USD 49.8 million) the previous year, while the NPF held around GMD 3.97 billion (USD 75.82 million) versus GMD 3.41 billion (USD 65.83 million) in 2020. This indicates healthy expansion across the main schemes. The SSHFC asset growth saw its funds grow from GMD 7.8 billion (USD 126.21 million) in 2022 to GMD 8.3 billion (USD 123.33 billion) in 2023, a 6.4% increase, but due to currency depreciation, USD values declined.

Membership in the Federated Pension Scheme also expanded modestly. As of 30 September 2023, 17,517 employees were enrolled, which included 394 new members that year, a sign of gradual coverage growth within the formal public and quasi-public workforce. While informal-sector inclusion remains a work in progress, targeted awareness and outreach, such as seminars and engagement with pensioner committees, have helped strengthen buy-in and service delivery. In summary, the Gambia’s pension sector is on a positive upward trajectory, fund assets and investment returns are growing, member engagement is improving, and benefits are being enhanced, although full informal-sector coverage remains an important goal yet to be fully achieved.

Contact Details Information of Banks operating in The Gambia