Banking sector stability in the Gambia
Author
Source
Islamic Research and Training Institute
Issue
Vol. 2015, Issue 3-12 (31 Dec. 2015), pp.1-13, 13 p.
Publisher
Islamic Development Bank (IDB) Islamic Research and Training Institute (IRTI)
Publication Date
2015-12-31
Country of Publication
Saudi Arabia
No. of Pages
13
Main Subjects
Financial and Accounting Sciences
Topics
Abstract EN
This paper looks at the stability of the banking sector in The Gambia which is mainly dominated by commercial banks.
It focuses on the recent evolution of the banking system as the entry of banks in the country increased.
The analysis indicated that Credit to GDP grew on average by over 50 percent in the past two years.
Despite an increased in sectorial distribution of loans since end-2006, this is trending downwards since end 2009.
The analysis further highlighted that the banking system as a whole is well capitalized and has ample liquidity.
However, credit risk poses a challenge in the Gambian banking sector as non-performing loan remained high.
Furthermore, the level of deterioration in FSIs, the aggregate PCA ratings have worsened in 2012 and early 2013, which hold in particular for those for asset quality, earnings, and liquidity.
As a consequent, banks that report a rating above three for any of the PCA components being subject to intensive supervision.
However, liquidity stress test analysis revealed that the banking system is very much liquid and could withstand bank-run.
American Psychological Association (APA)
Sham, Tamsir. 2015. Banking sector stability in the Gambia. Islamic Research and Training Institute،Vol. 2015, no. 3-12, pp.1-13.
https://search.emarefa.net/detail/BIM-668601
Modern Language Association (MLA)
Sham, Tamsir. Banking sector stability in the Gambia. Islamic Research and Training Institute No. 3-12 (2015), pp.1-13.
https://search.emarefa.net/detail/BIM-668601
American Medical Association (AMA)
Sham, Tamsir. Banking sector stability in the Gambia. Islamic Research and Training Institute. 2015. Vol. 2015, no. 3-12, pp.1-13.
https://search.emarefa.net/detail/BIM-668601
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 13
Record ID
BIM-668601