Liberia launches Financial Sector Development Plan
It will create a road map for the implementation of 63 reforms.The Central Bank of Liberia has launched the Financial Sector Development Plan (FSDI), which aims to prioritise 63 reforms and to create a road map for their implementation.
The reforms will be made across various sectors, including banking, insurance supervision, credit information system, payment systems, digital finance, social security, financial inclusion, access to finance and anti-money-laundering.
The FSDI, which was developed by the World Bank, FIRST Initiative, and the central bank, seeks to help assess where and how donor assistance can complement government priorities.
"There is no denial that the financial sector is facing challenges. When compared to others in the sub-region, the existing financial system is narrow and needs to be reviewed," Vice President, Joseph Boakai told Front Page Africa.
Profitability remains a "major challenge" to the banking sector, according to a recent financial and economic bulletin from the Central Bank of Liberia (CBL).
It pointed at the poor quality of banks' assets, a weak credit administration, as well as banks' relatively high operating expenses.
Banks are still recovering from the Ebola crisis. Governor Joseph Mills Jones said the impact of the disease resulted in Liberian banks’ total assets declining by 2.7 per cent between June and October 2014 as deposits fell by 2.8 per cent, and that loans and advances dropped 7.2 per cent, with lenders’ total capital down 4.2 per cent over the same period.