Monrovia – West Africa’s top banking executives, regulators, and financial policymakers on Tuesday, April 28, gathered in Monrovia for the opening of the 79th Executive Council Meeting and 43rd General Assembly of the West African Bankers Association (WABA), with a strong call for unified regional strategies to safeguard banking sector stability amid mounting concerns over non-performing loans (NPLs).
By Gerald C. Koinyeneh, [email protected]
Held under the theme, “Safeguarding Banking Sector Stability: Regional Responses to Non-Performing Loans,” the high-level summit brought together major financial stakeholders from across the sub-region, including Executive Governor of the Central Bank of Liberia Henry F. Saamoi, WAMA Director General Dr. Boima S. Kamara, WAMI officials, WAIFEM representatives, and leaders of commercial banking institutions.
The gathering underscored the increasing urgency for coordinated regional banking reforms as West African economies continue to navigate economic shocks, currency instability, commodity price fluctuations, and global uncertainties that have worsened credit risks and distressed assets.
WABA President Warns NPLs Threaten Regional Economic Growth
In his keynote address, WABA President Dr. Guy Laurent Fondjo described non-performing loans as one of the greatest threats to banking sector resilience in West Africa, warning that rising bad debts continue to weaken bank capital, reduce investor confidence, and constrain economic development.
Fondjo stressed that fragmented national responses would be insufficient, urging member states to adopt harmonized regulatory frameworks, strengthen credit risk management systems, improve loan classification standards, and accelerate debt recovery mechanisms.
“Safeguarding the stability of our banking sector is not optional—it is imperative,” Fondjo declared. “The decisions we make today will shape the future of our economies and the prosperity of our people.”
He further emphasized the need for stronger partnerships between banks, regulators, and credit bureaus, while also encouraging the use of financial technology and data analytics to improve credit assessment and early warning systems.
Liberia Bankers Association Calls for Innovation and Regional Solidarity
The President of the Liberia Bankers Association, Olalekan Balogun, reinforced the call for unity, cautioning that economic vulnerabilities in one country could have ripple effects across the entire ECOWAS region.
Balogun described regional solidarity as essential, comparing the spread of bad assets across borders to a contagious threat requiring collective defense.
“Regional solidarity is our shield,” Balogun said. “Just as bad assets can spread across borders like cancer, so too can solutions.”
He urged West African banks to modernize their response through digital innovation, predictive analytics, artificial intelligence, and fintech partnerships to better manage loan defaults while maintaining access to productive credit for economic growth.
Balogun also pointed to examples from the European Union, United States, and ASEAN, encouraging WABA to develop a uniquely West African model for NPL management rooted in local realities.
WABA Secretary General Highlights Strategic Importance of Collaboration
WABA Secretary General Alhagie Jeng described the Monrovia meeting as a critical platform for strengthening regional cooperation and building sustainable financial resilience.
Jeng praised Liberia and the Central Bank for hosting the event and emphasized that the persistence of non-performing loans poses significant threats not only to profitability but also to the banking sector’s broader role in supporting development.
He noted that deeper cooperation among financial institutions, regulators, and regional agencies is essential to building stronger, shock-resistant economies.
Jeng also publicly commended WAMA Director General Dr. Boima S. Kamara for significantly improving institutional support for WABA since assuming office, citing expanded office infrastructure, improved operational resources, and enhanced collaboration.
Liberia Positioned at Center of Regional Financial Dialogue
Hosting the prestigious summit positions Liberia as a significant player in regional financial discourse, with the country serving as a strategic venue for shaping policies aimed at strengthening banking systems across West Africa.
The conference is expected to produce actionable policy recommendations focused on harmonizing supervisory frameworks, strengthening distressed asset resolution systems, enhancing regional credit registries, improving legal debt recovery processes, expanding responsible lending practices, and leveraging technology to reduce future loan risks.
A Defining Moment for West Africa’s Financial Future
As West Africa confronts evolving financial pressures, the Monrovia assembly signals a broader recognition that sustainable banking sector stability will require not only national reforms but a robust, coordinated regional response.
For WABA and its member institutions, the challenge now lies in transforming policy discussions into practical reforms capable of protecting the sub-region’s financial architecture from systemic instability.
