Liberia News: CBL: ‘Banking Sector Is Stable And Profitable’

 Monrovia-The Central Bank of Liberia (CBL) has thrown light on the status of the country’s banking sector, stating it remains stable and profitable, contrary to recent media reports.

The CBL in a April 23, 2025 release maintained that “This performance demonstrates sustained growth” in the sector over recent years and the first quarter of 2025.

The release also reads: “The Bank states that the narrative analysis on pages 50 and 51 of the 2024 annual report is accurate and highlights consistent growth and strengthening of key balance sheet indicators, which underscore the banking sector’s continued stability and resilience.”

In a move aimed at further shedding light on the issue, CBL provided statistics that show how the Banking Sector has made progress since 2022 up to the end of the first quarter of 2025.

As per the statistics, total assets increased from L$206 billion in 2022 to L$293.7 billion in 2023, L$314.4 billion in 2024, and exceeded L$340 billion in the first quarter of 2025.

Also, CBL indicated that customer deposits rose steadily from L$135 billion in 2022 to L$198.7 billion in 2023, L$228.77 billion in 2024, and L$251 billion in the first quarter of 2025.

“Commercial bank capital grew from L$31.44 billion in 2022 to L$38.97 billion in 2023, L$45.15 billion in 2024, and L$47.6 billion in the first quarter of 2025,” the statistics indicated.

According to the CBL, the private sector, which is key to economic growth, job creation, innovation and revenue, also experienced steady credit growth, rising from L$76.22 billion in 2022 to L$91.96 billion in 2023 and over L$100 billion in 2024, accounting for over 95% of the banking sector’s total credit portfolio.

The Bank also stated that commercial bank profitability remains strong, with net income rising from L$4.20 billion in 2022, L$6.77 billion in 2023, and L$10.6 billion in 2024.

According to the CBL, the strong liquidity ratio of 49.29 percent and capital adequacy ratio 33.8 percent, exceeding the regulatory thresholds by over 34.29 percentage points and 23.8 percentage points are clear manifestation that Liberia’s banking sector remains stable, liquid, and well-positioned to support inclusive medium-term growth.

At the same time, CBL has clarified what it referred to as discrepancies identified in the graphical data presentation on page 10 and in Table 19 on Financial Soundness Indicators on page 53 of its recently published 2024 Annual Report.

The CBL said it has observed that the graphical representation of key banking sector balance sheet figures for the years 2022 and 2024 were inadvertently transposed in the 2024 Annual Report.

“This labeling issue created a visual impression of a contraction in the banking sector’s performance, which does not accurately reflect the actual financial position of the banking industry,” it added.

The CBL said it regrets the unintentional misrepresentation and has taken  immediate corrective actions, including the publication of a revised graph in the 2024 Annual Report on the Bank’s Website, and the implementation of measures to prevent future recurrence.

The Bank said it apreciates the expertise of stakeholders who analyzed the report and sincerely

Wilson