Prime Bank’s liquidation creates panic in the banking industry

The liquidation of Prime Bank Gambia has caused some general panic and confusion in the banking industry, as customers of both the bank and other banks in the country are afraid that such a big bank is wrapping up at this point in time.

The bank has been the second to close down in two years.

The Central Bank of The Gambia on Tuesday issued a press release stating that Prime Bank is closing down its operations in the country because its parent company, Societe General de Baque Liban, has opted to divest its subsidiary in The Gambia, hence the decision not to augment the bank’s capital to the required minimum capital of D200 million. 

Prime Bank is sufficiently liquid to meet its obligations to depositors, other creditors and any other person entitled to funds or property thereof.

The customers, who are compelled to withdraw their savings from the bank, have raised concerns over the bank’s closure. 

“I was shocked when I hear this sad news on the television. It has been my preferred bank but we the customers are left with no other choice except to withdraw our savings,” says one of the bank’s customers who spoke on condition of anonymity, after taking her deposits from the bank.

Prime Bank is the second financial institution in the banking industry to liquidate, after Oceanic Bank also failed to meet the minimum capital requirement of D150 million in 2010.

“Now which bank is going to close next,” Ousman Jammeh, a customer of one of the local banks in the country, asked rhetorically, while expressing concern over the closure of Prime Bank, a bank he said one of his friend was banking with.

Zenith, GTBank rated top for resilient performance

The parent companies of Zenith Bank Gambia Limited and Guaranty Trust Bank Gambia Limited have been rated top in Fitch's Viability Rating (VR) reflecting strong domestic franchises and resilient performance.   

In a special report on Nigeria banking sector published on 30 July, the rating agency said GTBank and Zenith in Nigeria were at the top with VRs of 'b+'.

"The VRs of these banks reflect strong domestic franchises and resilient performance through the cycle. The VRs also take account of lower than average concentration risk for the sector and acceptable levels of capitalization," the report says.

AGIB shareholder picks up bone with management

Hatib Janneh

Hatib Janneh, one of the Gambian shareholders of the Arab Gambian Islamic Bank, has expressed disappointment with the recent modus operandi of the bank, saying since FinBank Plc took over AGIB, the Gambian subsidiary has not been employing Gambians as it should.

In his intervention during the annual general meeting of the bank held on 8 May at Coco Ocean in Bijilo, Mr Janneh noted that most of the staffs (including senior management) of other banks in the country are Gambians while AGIB has failed to improve on this area and at the same time going backward rapidly in financial performance than imagined. 

“So I hope you will excuse me if I express my disappointment on this matter,” he said. 

Mr Janneh, who told AGIB management that his involvement in the Gambia banking sector started long ago, said: “I can remember criticizing Standard Chartered Bank on this matter 25 to 30 years ago and for me to start criticizing AGIB, of which I am a shareholder, I think is too much. 

“I hope this matter will be looked at very carefully because I think we (local shareholders) will not be satisfied with a bank that continues not to employ Gambians because maintaining foreign staff among other things increases the expenses of the bank and also deny locals of that opportunity to be employed. I hope to see some improvement at the next AGM.”