Concord Times (Freetown)
Jariatu Bangura
21 December 2011
Members of parliament have yesterday approved the banking act as an act that would provide for the licensing of persons carrying on bank business, the regulation and supervision of banking activities, the protection of depositors and provides for other related matters with the view to develop and promote a safe and sound banking system in Sierra Leone.
In his introduction, the Minister of Finance and Economic Development, Samura Kamara said the main objective of the bill is to continue the licensing of persons to carry out banking business by the central bank and also for the regulations and supervision of banking activities, adding that another objective of the act is to promote a safe and sound banking and to provide an appropriate level of protection for the depositors interest.
He noted that the recent global financial crises as well as the necessity to ensure conformity with the international best practices have necessitated a revision of Sierra Leone legislation dealing with central banking and the deposit taking financial institutions.
The assessment of Sierra Leone’s financial sector conducted in 2010 identified a number of weaknesses in the financial system and this he said have necessitated the review of the banking act 2000 and the Bank of Sierra Leone Act 2000.
He added that no foreign bank shall be permitted to engage in banking business in Sierra Leone otherwise solicit deposit from the public unless that person holds a valid license issued by the central bank for that purpose. There would be penalty for any violation for this act and that person will pay not less than 50 million Leones.
Hon. Sufian Kargbo urged that Sierra Leoneans should be protected from fraudsters as there was a bank that went bankrupt and many Sierra Leoneans were involved in it and nothing was given in return. There should be tight security for the safety of Sierra Leones as some of these banks were owned by foreigners, he said.
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