Central Bank of The Gambia (CBG) has on Monday 21st January 2013 closed down Prime Bank (Gambia) Limited. The closure comes as a result of the bank’s failure to meet the minimum capital of D200 million for commercial banks in The Gambia.
The CBG has increased the minimum capital for commercial banks in The Gambia from D150 million to D200 million, the equivalent of about US$7 million, by end of December 2012. CBG has argued that the increment is “in order to strengthen the country’s banking system”.
The Gambia, which used to be serviced by less than four commercial banks until a few years ago, has in recent times been affected by the phenomenon of an upsurge in the number of banks registered here, mainly from Nigeria.
According to local media reports, at the end of the 2009 financial year, The Gambia’s banking industry recorded a total loss of about 45 million Dalasis. Ten of the banks declared losses.