According to the unnamed source, these arrangements were designed to protect the soundness of the Liberian banking system.
Monrovia – Sources at the Central Bank of Liberia (CBL) have confirmed that SIB Bank is liquid and compliant with all banking regulations in the country. This statement comes in response to a recent local daily report titled, “US$2 Million Given SIB in Limbo?”
The source revealed that during the acquisition of the license, the now-defunct First International Bank Liberia Limited (FIBLL) was undergoing liquidation. To prevent damage to the banking industry from a potential collapse, the CBL entered into an arrangement with SIB Liberia Limited, enabling SIB to take on a significant portion of FIBLL’s assets and liabilities.
According to the unnamed source, these arrangements were designed to protect the soundness of the Liberian banking system. The transaction between SIB and the CBL also maintained national confidence in the financial industry, averting a collapse of the former bank, which could have caused significant damage.
Further investigation revealed that through this arrangement, SIB inherited a legacy deposit of US$23 million, of which the bank has so far paid US$14.9 million to legacy depositors.
“By their efforts, we understand that SIB saved key depositors from losing their funds. This was very commendable,” the source said.
The CBL source added that the recent intervention by the Central Bank of Liberia aimed to reduce the total impact of the payment of US$14.9 million made to the legacy depositors of the defunct FIBLL by SIB.
An internal memo from Christopher Walace, Senior Director of Economic Policy, dated May 24, 2024, and addressed to Governor J. Aloysius Tarlue Jr., stated: “The Board of Governors of the CBL has processed a resolution concerning CBL’s liquidity support to Sapelle International Bank Liberia Ltd (SIBLL). For this reason, I kindly seek your approval and instructions for the CBL’s Operations Department to proceed with the implementation of the instructions as contained in the Board of Governors’ resolution.” The request was subsequently honored.
When contacted for comment, a senior officer at SIB, who preferred to remain anonymous, said: “SIB remains strong and viable. The bank is well-capitalized and meets all capital adequacy requirements in Liberia. Additionally, the bank is introducing innovative products and services in the digital and electronic space.
“Currently, we operate in 17 locations across Liberia and are considered one of the fastest-growing banks in the country. With a staff strength of 157, SIB is expected to continue serving the Liberian people for a long time, consistently introducing innovative products and services to better meet their needs.”
