Monrovia-Following a number of publications in few media outlets this week, sources at the Central Bank of Liberia have refuted allegations that the SIB bank was facing financial problems.
The sources who declined to be named told this paper that the bank is strong finally. “That bank is one of the banks in the country went above the threshold for any new bank to operate in the country. The minimum requirement to establish bank in the country is US$10M. But SIB came with US$18.5M,” the source said.
One source added: “I think we should appreciate SIB bank for such a work. They have gone above the minimum requirement.”
“In fact SIB did well to settle huge liability of over US$14m. After that was done, the Central Bank realizing that it has done huge investment, decided to provide some support to it. After that time, it has been doing well and our records who that the bank is liquid,” one source who declined to be named said.
The source said at the time of the acquisition of the License, the defunct Bank, First International Bank Liberia Limited (FIBLL) was in the process of Liquidation. To prevent the damage to the Banking Industry from a collapse, the Central Bank Liberia entered into an arrangement with SIB Liberia Limited to take significant portion of the Assets and Liabilities of the defunct FIBLL.
According to the source, the arrangements were to protect the soundness of the Liberian Banking System. The transaction between SIB and the CBL also maintained the Nation’s confidence in the Financial Industry and prevented an alright collapse of the former Bank, which would have caused significant damage to the Financial Industry.
Further investigation revealed that , SIB through that arrangement, inherited a legacy deposit of US$23 Million. Out of that amount, the bank has paid so far US$14.9 Million to the Legacy depositors.
“By their efforts, we understand that SIB saved key depositors from losing. This was very good from the bank,” the source said.
The CBL source said, the recent intervention made by the Central Bank of Liberia, it was done to reduce the total impact of the Payment of US$ 14.9 Million made to the Legacy depositors of the defunct FIBLL by SIB.”
An internal Memo from Mr. Christopher Wallace, Senior Director/ Economic Policy written on May 24, 2024, addressed to the Governor,
J. Aloysius Tarlue, Jr, stated that : “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 operation Department to proceed with the implementation of the instructions as contained in the Board of Governor’s resolution.” The request was later honored.
SIB has not make official comments, but a senior manager who to remain anonymous said: “SIB remains strong and viable; the Bank is well capitalized and meets very well its capital adequacy requirements in Liberia and the bank is introducing innovative products and Services in the digital and electronic space.
“The official said: “right now, we are currently operating in 17 locations in Liberia is considered one of the fastest growing Banks in Liberia. With it staff strength of 157, it is expected that SIB would continue to be in Liberia for a life time and would continue to introduce innovative products and services to serve the Liberia people better.”
