The Central Bank of Liberia (CBL) has unequivocally and resolutely dismissed reports suggesting that two central commercial banks, including SIB Liberia Limited (SIBL), owned by Dr Paa Kwesi Nduom, are on the brink of collapse.
The other bank mentioned is the International Bank Liberia Limited (IBLL).
On August 8, 2024, Liberian media reports claimed that both banks faced severe financial difficulties, leading to a rush of customer withdrawals.
The reports suggested that SIBL began encountering problems after acquiring the troubled First International Bank Liberia Limited (FIBLL) and assuming its liabilities, which amounted to approximately US$23 million.
According to the claims, SIBL had paid US$14.7 million of these liabilities and requested the Central Bank to cover the remaining US$8.5 million, citing cash flow issues.
After a two-year review, the CBL Board of Governors reportedly approved the outstanding US$8 million payment. Still, this payment was delayed until the bank sought intervention from the Liberian President.
The board ultimately authorized the payment on May 17, 2024. Despite this, reports indicated ongoing difficulties for customers attempting to withdraw their funds.
The Green Revolution of Liberia, a pro-democracy group, expressed concerns about a potential liquidity crisis at SIBL, citing public complaints about staggered withdrawals.
The CBL has categorically rejected these reports as ‘untrue’ and urged the public to disregard the ‘misinformation,’ providing solid reassurance to the public.
The central bank’s statement described the media claims as impulsive, misleading, and damaging to public confidence in Liberia’s financial system.
It has assured that both SIBL and IBLL are in a robust financial position, with liquidity and capital reserves well above the regulatory requirements, instilling a sense of security in the public.
“The CBL informs the public that the financial positions of these banks are robust, with their liquidity and capital reserves exceeding regulatory thresholds,” the statement read.
“These banks fully comply with the CBL’s regulatory standards and continue to operate effectively under our supervision.”
