CBL Rejects ‘Problem Banks’ Label-Says Liberia’s Banking Sector Remains Stable

MONROVIA – The Central Bank of Liberia (CBL) is countering public anxiety following recent media reports that described three commercial banks as “problem banks.” It warns that outdated information can erode confidence in the financial system. In a clarification issued in Monrovia, the CBL said the reports relied on an old International Monetary Fund (IMF) assessment while ignoring recent supervisory data and significant capital injections that have strengthened the affected institutions. Emphasizing its statutory role as banking regulator, the CBL reassured depositors that the institutions remain liquid, compliant with prudential standards, and under continuous supervision. As THE ANALYST reports, the Bank is urging the media to verify financial information to avoid mischaracterizations that could destabilize public trust.

The Central Bank of Liberia (CBL) has dismissed recent media characterizations describing the Liberia Bank for Development and Investment (LBDI), Bloom Bank Africa Liberia Limited (BBALL), and Sapelle International Bank Liberia Limited (SIBLL) as “problem banks,” warning that such reporting risks undermining public confidence in the country’s financial system.

In a statement issued January 16, 2026, in Monrovia, the CBL clarified that newspaper publications dated January 12 and 15 relied on an International Monetary Fund (IMF) report published more than two years ago, while failing to reflect current supervisory assessments and recent capital injections that have materially improved the financial positions of the banks referenced.

According to the CBL, presenting outdated information as current reality creates unnecessary alarm and misrepresents the true condition of Liberia’s banking sector.

“While the named financial institutions may have experienced challenges in the past—which is not unusual for any going concern—there has been significant improvement in their conditions under the close supervision of the Central Bank of Liberia,” the statement said.

The CBL reassured the public that all three banks are liquid and operating in compliance with applicable regulatory requirements and prudential standards. It emphasized that the institutions remain subject to continuous risk-based supervision through both on-site and off-site examinations.

Providing specific updates, the Central Bank disclosed that Liberia Bank for Development and Investment (LBDI) recently injected an additional US$20 million in fresh capital, strengthening its balance sheet and capital adequacy position.

Similarly, Bloom Bank Africa Liberia Limited received a US$5 million capital injection in June 2025, followed by an additional US$10 million in December 2025, a move the CBL said demonstrates strong shareholder commitment and enhanced financial resilience.

For Sapelle International Bank Liberia Limited (SIBLL), the Central Bank noted that the institution remains liquid in line with regulatory thresholds and has committed to inject an additional US$10 million in capital within the month to further strengthen its capital base.

Beyond the individual banks, the CBL said broader banking sector indicators continue to point to stability and resilience. Estimated private sector credit to GDP increased from below 15 percent in 2024 to about 17.7 percent in 2025, while liquidity and capital adequacy ratios are estimated at 51.6 percent and 37.9 percent, respectively.

“These ratios exceed regulatory thresholds by wide margins,” the CBL noted, adding that the figures reaffirm the banking sector’s strength, resilience, and continued role in financial intermediation.

The Central Bank stressed that, as the sole statutory authority responsible for licensing, regulation, and supervision of banks in Liberia, it does not tolerate liquidity or capital breaches. Such requirements, it said, are central provisions of the New Financial Institutions Act of 1999, the anticipated Bank Financial Institution and Bank Financial Holding Companies Act, and structural benchmarks under Liberia’s Extended Credit Facility (ECF) program with the IMF.

The CBL urged media institutions to verify banking-sector information directly with the regulator before publication, noting that any characterization of licensed banks as “problem banks” without reference to current supervisory assessments should be disregarded.

The Bank further assured depositors that their funds remain accessible and that there is no evidence of a run on any licensed bank.

“The Central Bank of Liberia will continue to closely monitor all financial institutions and take decisive actions where necessary to safeguard depositors and preserve financial stability,” the statement concluded.