The new MD/CEO of the bank, whose apex body Vista Group supports customers by providing full range of accessible facilities to everyone, is Mr Eric Obeng Saah. Mr Saah has joined the bank in The Gambia with rich experience spanning over 24 years in the African Financial Services Industry.
As Mr Saah assumes the task of continuing the vision of the Vista Group in its strategic global expansion in Africa, America and Europe, it is imperative that he is given some additional tips about the status quo of the banking industry in The Gambia.
As the banking sector in the country continues to thrive cautiously on the backdrop of an economy that is recovering from exogenous shocks of the Covid-19 pandemic and the Russia-Ukraine war, the monetary policy stance of the Central Bank of The Gambia (CBG) has been restrictive during the year 2023 to fight soaring price level as the Government “remains committed” to maintaining price stability.
According to the 2024 National Budget, the Monetary Policy Rate (MPR) of the Central Bank was raised to 17 per cent in the Monetary Policy Meeting in August 2023, from 13 per cent at the beginning of the year.
The budget further states: “Annual growth in broad money decelerated to 5.6 percent at end-September 2023, from the 9.9 percent growth observed in the corresponding period last year, mirroring the decline in the Net Foreign Assets (NFA) of the banking system.
“The NFA of the banking system contracted to D19.2 billion at end-September 2023 from D21.9 billion a year earlier, recording a 12.6 percent decline. The NFA of the Central Bank also declined significantly from D13.2 billion to D9.1 billion as of end-September 2023. The decline in the net foreign assets of the banking system reflects the impact of adverse external shocks on the balance of payments.
“Growth in the Net Domestic Assets (NDA) of the banking system, the main source of liquidity, remained robust increasing to D48.4 billion or by 15.0 percent at end-September 2023 but lower than the growth of 30.8 percent in September 2022. The increase in the NDA was supported by increased borrowing by government and private sector. Domestic credit rose by 8.9 percent as a result of a 9.5 percent increase in net claims on government and an 18.2 percent growth in private sector credit.
“Reserve money, the bank operating target, grew by 12.2 percent in September 2023 compared to a contraction of 6.0 percent registered in the corresponding period in 2022, reflecting the expansion in the NDA of the banking system. Of the components of reserve money, currency in circulation recorded a growth of 12.9 percent, and reserves of commercial banks registered a growth of 11.1 percent in the period under review.
“The Foreign Exchange market is operating with challenges in the sector. From October 2022 to September 2023, volume of transactions measured by the aggregate of purchases and sales of foreign currency decreased to US$2.1 billion from US$2.5 billion in the same period in 2022. Purchases of foreign currency, which indicates supply, decreased by 15.3 percent, to US$1.0 billion. Similarly, sales of foreign currency declined by 16.1 percent, to US$1.1 billion in the same period.”
In this state of affairs, much is expected of Mr Saah, who has a wealth of experience in Universal Banking, Housing Finance, Leasing &Factoring, FinTech & Data Analytics, as well as in entrepreneurship and other disciplines. He is therefore welcomed to the Gambian banking/financial industry.
Source link : https://thepoint.gm/africa/gambia/opinion/economywatch-vista-bank-gambia-under-new-ceo
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Publish date : 2024-01-30 08:00:00
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