CBL admits errors – Liberia news The New Dawn Liberia, premier resource for latest news

Authorities at the Central Bank of Liberia (CBL) have acknowledged errors in the bank’s 2024 Annual report which created the impression that the sector was in decline. But have clarified that the banking sector remains strong and profitable, adding that is has revised the mistakes in the report.

Monrovia, April 23, 2025: In the clarification sent to this paper on Tuesday, April 22, CBL acknowledged that there were discrepancies in the graphic data presentation recorded in its 2024 annual report.

These figures, which the bank said were inadvertently transposed into the 2024 Annual Report, painted a picture of a country’s banking sector in sustained and worsening decline.

CBL’s clarification was triggered by an analytical report published in the New Dawn April 21, 2025, edition, quoting data published in the bank’s 2024 report that misrepresented the actual financial position of the banking sector.
However, the Bank said it acknowledged the discrepancies identified in the graphical data presentation on page 10 and Table 19: Financial Soundness Indicators on page 53 of its recently published 2024 Annual Report.

The bank noted that the graphical representation of key banking sector balance sheet figures for the years 2022 and 2024 was inadvertently transposed in the 2024 Annual Report.

“This labeling issue created a visual impression of a contraction in the banking sector’s performance, which does not accurately reflect the actual financial position of the banking industry.” The CBL added.

“The CBL appreciates the expertise of stakeholders who analyzed the report and sincerely regrets the unintentional misrepresentation. Immediate corrective actions are being taken, including the publication of a revised graph in the 2024 Annual Report on the Bank’s Website, and the implementation of measures to prevent future recurrence.” The bank’s clarification said.

Meanwhile, despite the mistakes within the Bank’s annual report, CBL emphasized that the banking sector remains stable and profitable, adding that this performance demonstrates sustained growth in the sector over recent years and the first quarter of 2025.

The Bank opined that the narrative analysis on pages 50 and 51 of the 2024 annual reports is accurate and highlights consistent growth and strengthening of key balance sheet indicators, which underscore the banking sector’s continued stability and resilience.

It further provided statistics which show the progress the banking sector has made since 2022 up to the end of the first quarter of 2025:

According to CBL, total assets increased from L$206 billion in 2022 to L$293.7 billion in 2023, L$314.4 billion in 2024, and exceeded L$340 billion in the first quarter of 2025.

It said customer deposits rose steadily from L$135 billion in 2022 to L$198.7 billion in 2023, L$228.77 billion in 2024, and L$251 billion in the first quarter of 2025.

The Bank also explained thar commercial bank capital grew from L$31.44 billion in 2022 to L$38.97 billion in 2023, L$45.15 billion in 2024, and L$47.6 billion in the first quarter of 2025.”

It continued that the private sector, key to economic growth, job creation, innovation, and revenue, also experienced steady credit growth, rising from L$76.22 billion in 2022 to L$91.96 billion in 2023 and over L$100 billion in 2024. This accounted for over 95% of the banking sector’s total credit portfolio.

It said commercial bank profitability remains strong, with net income rising from L$4.20 billion in 2022, L$6.77 billion in 2023, and L$10.6 billion in 2024.

“The strong liquidity ratio of 49.29 percent and capital adequacy ratio 33.8 percent, exceeding the regulatory thresholds by over 34.29 percentage points and 23.8 percentage points, are clear manifestation that Liberia’s banking sector remains stable, liquid, and well-positioned to support inclusive medium-term growth,” CBL concluded. -Edited by Othello B. Garblah. https://thenewdawnliberia.com/liberia-banking-sector-in-crisis/