Banking Act, 2019
The current Act regulating banking business in Sierra Leone, providing for the licensing, prudential supervision and resolution of banks by the central bank.
Summary
The Banking Act, 2019 is the principal statute regulating the business of banking in Sierra Leone. It modernises the framework for the licensing, operation, supervision and resolution of banks, strengthening the powers of the Bank of Sierra Leone as banking supervisor.
The Act requires a licence to carry on banking business and sets prudential requirements as to capital, liquidity, ownership and governance. It provides for ongoing supervision, corrective action, and the orderly resolution of failing banks, including powers of intervention and the protection of depositors.
It aligns Sierra Leone's banking regime with contemporary standards of prudential regulation and financial stability.
Main provisions
- Requires a licence from the central bank to carry on banking business.
- Sets prudential requirements as to capital, liquidity, ownership and governance.
- Provides for ongoing supervision and corrective action by the Bank of Sierra Leone.
- Provides for the resolution of failing banks and protection of depositors.
- Creates offences and penalties for breach of the Act.
- Aligns the regime with contemporary prudential standards.