Gambia: CBG takes control of Keystone Bank and injects €5.4m into its capital
The Central Bank of the Gambia (CBG), acting under section 45 of the Banking Act 2009, has taken over Keystone Bank with effect from 5 May 2014.The Central Bank of the Gambia (CBG), acting under section 45 of the Banking Act 2009, has taken over Keystone Bank with effect from 5 May 2014.
The institution acted after it emerged that the bank's capital fell below the regulatory minimum of GMD200 million, The Daily Observer reports.
A press release from the central bank stated that the new ownership will provide the Bank with "firmer financial muscles to support the customers' businesses
The CBG has indeed injected an additional capital of
million (€5.4 million) to increase Keystone Bank's capacity to support the business of its customers. A new executive management has also been appointed.
Between 2007 and 2010, the number of banks in Gambia doubled to 14, leading to intense competition and diminished profits for the system as a whole, according to the 2014 African Economic Outlook report.
The country's banking system underwent a modest consolidation when two banks went into voluntary liquidation rather than meet the two-step increase in the minimum capital requirement implemented at end-2010 and end-2012.