The Governor of the Central Bank of Sierra Leone Sheku Sambadeen Sesay has disclosed that the banking sector now provides jobs for 2,121people.
Governor Sesay was reacting to claims about 14 banks being too many for a small country like Sierra Leone.
He said “this situation is not peculiar to Sierra Leone. The current number of banks in the country is not out of place relative to the number of banks in other countries in the sub region, considering the size of the population and the gross domestic product (GDP).”
The Governor went on to give examples saying that with a population of a hundred and forty million (140,000,000), Nigeria had twenty four banks and a branch network of over five thousand.
“Sierra Leone had 14 banks with a population of 6.2 million and a Gross Domestic Product (GDP) of 4.3 billion US dollars while the Gambia with a population of 1.7 million and a GDP of 2.2 billion has 13 banks and Liberia has 8 banks with a population of 3million and a GDP of 1.4 billion.”
He argued that “the increase in the number of banks in Sierra Leone (has) had some positive effects in the banking system.”
Namely he said “the quality of banking services has improved and has led to the introduction of new products in the market, contributing to the deepening of our banking system.”
He noted that the banks have reduced their lending rates giving consumers the chance of negotiating rates which he said was not happening before.
Another positive aspect he said was that “the number of banks have increased employment opportunities.”
“the total staff employed has increased to two thousand one hundred and twenty one (2121) at the end of June 2009 as against one thousand one hundred and forty one (1141) as at December 2006.”
This shows an 86% rise in employment over a three year period by the banking sector.
The Governor stated that every aspect of the economy has benefited from the proliferation of banks in the country adding that such positive developments should be embraced.
By Abdul Samba Brima
Governor Sesay was reacting to claims about 14 banks being too many for a small country like Sierra Leone.
He said “this situation is not peculiar to Sierra Leone. The current number of banks in the country is not out of place relative to the number of banks in other countries in the sub region, considering the size of the population and the gross domestic product (GDP).”
The Governor went on to give examples saying that with a population of a hundred and forty million (140,000,000), Nigeria had twenty four banks and a branch network of over five thousand.
“Sierra Leone had 14 banks with a population of 6.2 million and a Gross Domestic Product (GDP) of 4.3 billion US dollars while the Gambia with a population of 1.7 million and a GDP of 2.2 billion has 13 banks and Liberia has 8 banks with a population of 3million and a GDP of 1.4 billion.”
He argued that “the increase in the number of banks in Sierra Leone (has) had some positive effects in the banking system.”
Namely he said “the quality of banking services has improved and has led to the introduction of new products in the market, contributing to the deepening of our banking system.”
He noted that the banks have reduced their lending rates giving consumers the chance of negotiating rates which he said was not happening before.
Another positive aspect he said was that “the number of banks have increased employment opportunities.”
“the total staff employed has increased to two thousand one hundred and twenty one (2121) at the end of June 2009 as against one thousand one hundred and forty one (1141) as at December 2006.”
This shows an 86% rise in employment over a three year period by the banking sector.
The Governor stated that every aspect of the economy has benefited from the proliferation of banks in the country adding that such positive developments should be embraced.
By Abdul Samba Brima