Gambian Commercial Banks Report Mixed Results in 1990s

The Central Bank of the Gambia has released its latest report on commercial banks’ assets and liabilities, revealing mixed results for the decade of the 1990s.

Growth in Claims

According to the report, total claims on non-banks increased significantly during the decade, growing from D'237.6 million in 1986 to D'940.8 million in 1994, a growth rate of over 300%. This surge was largely driven by an increase in government claims, which rose from D'99.1 million in 1986 to D'302.5 million in 1994.

Claims on banks also showed significant growth, rising from D'118.5 million in 1986 to D'874.6 million in 1994. This increase was largely driven by an expansion of loans and advances to the private sector, which rose from D'2.8 billion in 1986 to D'359.5 billion in 1994.

Growth in Liabilities

On the liabilities side, total deposits increased from D'36.7 million in 1986 to D'714.2 million in 1994, with government deposits accounting for a significant portion of this growth. Foreign liabilities also rose significantly during the decade, increasing from D'606.9 million in 1986 to D'438.2 million in 1994.

Growth in Assets

The report highlighted the growing importance of foreign assets in commercial banks’ balance sheets, which increased from D'29.3 billion in 1986 to D'64 billion in 1994. In terms of fixed assets, commercial banks invested heavily in new buildings and equipment during the decade, with fixed assets increasing from D'22.7 million in 1986 to D'59.6 million in 1994.

Growth in Other Assets

The report also showed that other assets, such as securities and investments, increased significantly during the decade, rising from D'13.6 million in 1986 to D'98.9 million in 1994.

Conclusion

Overall, the report suggests that commercial banks in the Gambia have made significant progress in terms of growth and expansion during the decade of the 1990s, although there are concerns about the increasing reliance on foreign assets and liabilities.