Directives for the microfinance institutions
The Central Bank of The Gambia issues the following directives on revised Capital and Required Reserves for Finance Companies dated June 23, 2017. It was indicated that:
- The “Total Preferential Shares” considered as an investment fund not be capitalized;
- An extension period of December 31, 2018 has been given to meet the Minimum Capital Requirement (MCR) of D50 million;
- The Required Reserve requirement of 8% is waived for NACCUG as an Apex Institution of Credit Unions;
- 30% of Total Deposit Liabilities should be invested in Treasury Bills and cannot be rediscounted without the prior approval of the Bank; and
- The Capital Adequacy Ratio (CAR) has been increased to 20% from 16%.
All were urged to comply with these directives effective June 30, 2017 failing which an appropriate penalty would be instituted.