Bank of Sierra Leone

Bank of Sierra Leone radmin
Sub-region
Governor's photo
Dr. Ibrahim Stevens
Acting Governor?
Off
Governor's Name
Dr. Ibrahim Stevens
Headquarters
Freetown, Sierra Leone
Currency
Leone - SLL
banks_subregion_taxo

Annual Reports

Annual Reports SIERRALEONE

Major national indicators in brief

Major national indicators in brief SIERRALEONE

Publications

Publications SIERRALEONE

Central Bank Statutes:

The Bank of Sierra Leone Act,2011 being an Act to continue in existence the Bank of Sierra Leone, to ensure monetary stability and to provide for other related matters.

The Banking Act 2011 being an Act to provide for the licensing of persons carrying deposit-taking business the regulation of deposit-taking activities, the protection of depositors and to provide for related matters with a view to developing and promoting an efficient banking and financial system in Sierra Leone.

The Other Financial Services Act being an Act to make provision for the licensing regulation and supervision of institutions carrying on financial activities other than banking and for related matters.

Statistics

Statistics radmin

Indicators of Convergence

Indicators of Convergence SIERRALEONE

According to the West African Monetary Zone Programme, in order to achieve harmonization the following criteria should be observed: -

Primary Criteria

  • Fiscal Deficit (excluding grants) in percent of GDP < 4
  • Inflation Rate (yr-on-yr) (%) Single digit
  • Central Bank Financing (% previous year’s tax receipts) < 10
  • Gross Foreign Reserves (in months of imports) > 3

Secondary Criteria

  • Domestic Arrears (in millions of Leones) 0.0
  • Tax Revenue (% of GDP) > 20
  • Wages of Salary Expenditure (% Total Tax Revenue < 35
  • Real Interest Rate > 0
  • Real Exchange Rate/Leones/US$ Stable
  • Public Investment/Tax Revenue Ratio (%) > 20

Real Sector

Real Sector SIERRALEONE

Money and Credit

Money and Credit SIERRALEONE

Public Finance

Public Finance SIERRALEONE

External Sector

External Sector SIERRALEONE

Banking System

Banking System SIERRALEONE

The banking industry in Sierra Leone, presently consist of six (6) commercial banks.

Prior to the rebel incursion in the country, these commercial banks operated a network of branches in all the major towns in the country.

However, most of their activities were curtailed as most branches closed down due to the insecurity that prevailed during those years.

Since relative peace has returned to the country, the banks have resuscitated their activities in most of the provincial areas and the Freetown environs by reopening their branches.

National Payment System

National Payment System SIERRALEONE

The National Payment System, a modernization project was launched in October 2002, to provide an efficient customer centered payment system designed to meet the payment needs of the country.

Limitations of the current Method of Payment

The current methods of payment in Sierra Leone have various shortcomings such as delays in settlement periods, high costs, and risk of fraud. The most common instruments that characterize these payment methods are cash, cheques, and to a limited extent electronic payments.

What has been done so far

The Director of Banking is the Chairman of the project committee and the main objectives are to minimize payment, clearing and settlement risks and achieve reliable, secure, convenient, cost effective, universal and integrated systems to meet the needs of the economy.

More specifically, the major issues under focus include the following:

  • Problems associated with the NPS, background of the country’s culture and economy and the country’s national payment system needs.
  • The infrastructure situation and state of automation within and between bank branches and their customers.
  • The key legal structures that affect payments.
  • The existing payment instruments.
  • Inter bank clearing and settlement systems.
  • Risks associated with payments in the country.


To streamline and reduce on settlement delays the Central Bank adopted a two clearing system to ensure that all high value payments are finalized on transaction dates.

However, the committee is still working on setting modalities for the implementation of a modernized and more robust National Payment System in compliance with WAMI standards.

Sierra Leone Government Securities

Sierra Leone Government Securities SIERRALEONE

TREASURY BEARER BONDS

These are government securities introduced in 1993 with a 12 (twelve) month term to maturity. They are issued in the primary market at face value in monthly auctions. Since interest payments are made quarterly, four interest coupons are attached to the TBB certificates, which are presented on maturity to the commercial banks for interest payment. Commercial banks and the Discount House participate in the primary market as agents through which customers bid for Treasury Bearer Bonds.

Currently treasury bonds are issued in certificated bearer form but reform measures in the form of a Book-Entry System and other IT infrastructure are being put in place to support the de-materialised issuance of these treasury bonds and promote the development of secondary market in government securities.

TREASURY BILLS

These are short-term government borrowing instruments introduced in 1964 with a 91 day term to maturity. As investment assets they are sold by auction in weekly lots with tap issues to Discount House, banks and other public agencies. Treasury bills are issued through commercial banks and Discount Houses as primary market dealers, on a discount basis - that is, they are sold originally at a price below their face value, with face value payable at maturity. The difference between the price and face value constitute the interest payment. Treasury bills remain an important financial instrument with a significant role in monetary management.

The leone

The leone SIERRALEONE

Bank of Sierra Leone notes are printed in various colours with different designs on both the front and the back. Although the bank experimented with colour, new designs and printing techniques, its notes remain essentially the same throughout and have similar dimensions.

Sierra Leonean figures have been depicted on the front of notes of all series. The character chosen has to have made an indisputable contribution to the Sierra Leonean history.

The various designs are illustrated here...........