GAMBIA: Financial Institutions Act 1992 Shapes Compliance Regulations for Banking Sector

The banking sector in The Gambia is governed by a set of regulations aimed at ensuring the availability of adequate and efficient financial services to rural communities. These rules, rooted in the provisions of the Financial Institutions Act (FIA) 1992, promote the development of viable and stable rural financial institutions that effectively meet the needs of the sector.

Purpose of Policy Guidelines

The policy guidelines are designed to enhance the effectiveness and quality of financial services required to achieve economic development objectives. While they do not replace the provisions of the FIA (1992), they provide interpretation and articulation of government macroeconomic policies regarding rural financial services.

Key Provisions

• The regulations are intended to promote stability and growth in the banking sector.
• In the event of a conflict between these regulations and those of the FIA (1992) or macroeconomic policies, the latter two shall take precedence.
• The regulations are seen as a vital tool for promoting stability and growth in the banking sector.

Impact on Economic Development

The implementation of these regulations is expected to have far-reaching implications for the Gambian economy. They are designed to:

• Enhance the development of rural financial institutions
• Strengthen the effectiveness of these institutions
• Improve the overall quality of financial services

This move is seen as a significant step towards achieving economic development objectives and promoting financial inclusion in The Gambia.