Assessment of the financial sector in The Gambia

The report: (1) describes the challenge facing the financial sector in the context of the Gambian economy; (2) profiles the country"s financial institutions, dominant among which are three banks (two private commercial banks and a government-owned development bank in the early stages of privatization) and one relatively large non-bank financial institution, the parastatal Social Security and Housing Finance Corporation; (3) reviews competitive conditions in each of the major financial markets and identifies regulatory, supervisory, tax, and accounting problems not being addressed under current conditionality; and (4) presents a schedule of policy actions to improve the financial sector. Recommendations focus on: strengthening the financial sector"s legislative, regulatory, and administrative framework in order to protect the rights of creditors and investors; removing procedural and tax impediments on financial transactions; changing the Government"s borrowing policies so as to encourage longer-term borrowing; and encouraging financial institutions to broaden lending.