The Central Bank of Liberia (CBL) has issued a clarification regarding discrepancies in its 2024 Annual Report, specifically addressing concerns raised by an article published in the New Dawn newspaper. The article, citing figures from the report, suggested a declining trend in the Liberian banking sector. However, the CBL clarified that these figures were inadvertently transposed, creating a misleading visual representation of the sector’s performance. The bank acknowledged the error and emphasized that the actual financial position of the banking industry is one of stability and profitability. Corrective measures have been implemented, including the publication of a revised report on the CBL website, and steps to prevent similar errors in the future.
The primary issue stemmed from a mislabeling of graphical data on page 10 and Table 19 (Financial Soundness Indicators) on page 53 of the report. This transposition gave the false impression of contraction within the banking sector. The CBL expressed regret for the unintentional misrepresentation and appreciated the vigilance of stakeholders who identified the discrepancy. While acknowledging the graphical error, the CBL affirmed the accuracy of the narrative analysis presented on pages 50 and 51 of the report. This analysis, according to the bank, correctly portrays consistent growth and strengthening of key balance sheet indicators, reflecting the sector’s resilience and stability.
To further underscore the positive trajectory of the banking sector, the CBL provided detailed statistics demonstrating growth across key indicators. Total assets witnessed a significant increase, rising from L$206 billion in 2022 to L$293.7 billion in 2023, further reaching L$314.4 billion in 2024, and surpassing L$340 billion in the first quarter of 2025. This upward trend was mirrored in customer deposits, which grew steadily from L$135 billion in 2022 to L$198.7 billion in 2023, L$228.77 billion in 2024, and then to L$251 billion in the first quarter of 2025.
Strengthening the foundation of the banking sector, commercial bank capital also experienced robust growth. It increased from L$31.44 billion in 2022 to L$38.97 billion in 2023, further climbing to L$45.15 billion in 2024, and finally reaching L$47.6 billion in the first quarter of 2025. This capitalization trend is vital for the sector’s stability and its capacity to support economic activities. The CBL also highlighted the performance of the private sector, recognizing its crucial role in economic growth, job creation, innovation, and revenue generation. Private sector credit witnessed consistent expansion, increasing from L$76.22 billion in 2022 to L$91.96 billion in 2023, and surpassing L$100 billion in 2024. This indicates a healthy lending environment and signifies the banking sector’s active participation in supporting private sector development. Importantly, private sector credit represented over 95% of the banking sector’s total credit portfolio.
Profitability within the commercial banking sector also remained strong, with net income exhibiting substantial growth. It rose from L$4.20 billion in 2022 to L$6.77 billion in 2023 and further increased to L$10.6 billion in 2024. This consistent profitability underscores the financial health of the banking sector. The CBL further emphasized the sector’s robust liquidity and capital adequacy ratios. A liquidity ratio of 49.29% and a capital adequacy ratio of 33.8% were reported, significantly exceeding the regulatory thresholds by over 34.29 percentage points and 23.8 percentage points, respectively. These high ratios serve as clear indicators of the banking sector’s stability, ample liquidity, and overall preparedness to facilitate inclusive medium-term economic growth.
In conclusion, despite the initial misrepresentation caused by the transposed data in the 2024 Annual Report, the CBL’s clarification, coupled with the detailed financial data provided, paints a positive picture of the Liberian banking sector. The sector demonstrates consistent growth in key indicators, strong profitability, and robust liquidity and capital adequacy, all of which contribute to its stability and its ability to support the country’s economic development. The CBL’s commitment to rectifying the error and implementing preventative measures underscores its dedication to transparency and accurate reporting.
