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Establishment of Commercial Banks in Sierra Leone
- Any company wishing to carry on deposit taking in Sierra Leone must be registered in Sierra Leone.
- It must apply in writing for a licence to the Bank of Sierra Leone.
- The application for a banking licence should be accompanied by:
- Names and addresses of the promoters or sponsors.
- Business activity of promoters/sponsors:
- Names and addresses of the companies, firms, concerns in which they are interested as principal shareholders, directors, partners, proprietors or guarantors indicating the nature of interest.
- Amount and percentage of shareholding or stake.
- Balance Sheet and Profit and Loss accounts of the concerns for the last 3 years to assess their performance.
- Nature of management participation by the promoters/sponsors.
- Banker's credit reports.
- Details of litigations, if any, against the promoters/sponsors, which are pending.
- Whether any of them were subject to insolvency/bankruptcy proceedings in the past and if so, the details thereof.
- Report on market survey or feasibility study and report.
- A copy of the Memorandum and Articles of Association of the company in English language.
- A copy of the latest audited balance sheet of the company in English language.
- A copy of the Certificate of Registration.
- Names, qualifications, experience and addresses of the members of the Board of Directors and Senior Management of the proposed bank.
- Nomination of External Auditors.
- Capital structure of the proposed bank should be adequate. The minimum paid-up capital is determined by the Central Bank by regulations from time to time.
- Business plan for the proposed bank clearly stating objectives and giving detailed financial projections, customer attraction plan, target market and investment strategies and the proposed risk management strategy. The financial projections should be made for the initial five (5) years and explanation given of the assumptions made in preparing the projections.
- Expertise of the promoters in the management of financial institutions.
- Infrastructural arrangements for the proposed bank including the following:
- Suitability of premises
- Computerisation, both hardware and software and maintenance
- Accounting procedures and operations manual
- Organisational structure
- Corporate policies and management
- Internal Audit
- Manpower recruitment, training etc.
- Correspondent and agency arrangements
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