First Atlantic Bank PLC (FAB) has achieved a major milestone in its expansion plans, securing regulatory approval to operate in Liberia.
This marks a significant step forward in the Bank’s mission to become a global bank with a strong presence in West Africa, leveraging its roots in Ghana.
The license is a testament to FAB’s robust governance structures, operational strength, and long term strategy, positioning the Bank to extend its customer centric banking model beyond Ghana’s borders. With years of experience in retail, corporate, and digital banking, FAB is poised to make a meaningful impact in Liberia.
The move into Liberia is more than just a geographical expansion. FAB plans to support trade, entrepreneurship, and financial inclusion, offering modern and reliable banking solutions tailored to the local market’s needs. As the Bank prepares to commence operations, its culture of service excellence, innovation, and trust will be at the forefront of its mission.
Additionally, FAB is a two time Digital Bank of the Year award winner, a recognition that underscores its strength in digital innovation and customer experience. The Bank intends to leverage this award winning digital banking expertise in its expansion activities, deploying proven platforms, processes and capabilities to deliver seamless, modern banking solutions in Liberia.
By exporting its expertise and values to a new market, FAB is strengthening regional economic ties and reinforcing its commitment to delivering exceptional banking experiences. With this exciting new chapter unfolding, FAB is ready to make waves in Liberia and beyond.
The expansion comes at a strategic time for Liberia’s financial sector, which has been experiencing significant growth in recent years. According to the Central Bank of Liberia (CBL), the banking system remained generally stable in 2022 with banks showing improved balance sheets due to the recovery of overall economic activity following the COVID 19 pandemic.
Banking services in Liberia are currently provided by nine commercial banks, all foreign owned except for Liberia Bank for Development and Investment (LBDI). The sector has seen dynamic growth in mobile money and digital financial services, with registered subscribers growing to over 9.3 million in 2023.
Liberia is implementing its National Financial Inclusion Strategy (NFIS) 2020 to 2024, which aims to expand access to financial services particularly through digital channels. The strategy seeks to increase financial service access from 35.7 percent to 50 percent by 2024, guided by a coordinated effort involving both public and private sectors.
The NFIS focuses on boosting financial access by expanding agent banking, easing account opening, and supporting non bank financial institutions regulatory frameworks. It also aims to improve digital financial services and strengthen consumer protection.
FAB’s entry into the Liberian market aligns with these national objectives. The bank’s strong digital banking capabilities, recognized through its Digital Bank of the Year awards, position it well to contribute to Liberia’s financial inclusion agenda.
The Financial Institutions Act (FIA) of 1999 is the main law that governs the activities of commercial banks and other financial institutions in Liberia. The FIA grants CBL the authority to enact its mandate and implement its powers to regulate and supervise the sector. It is a comprehensive banking act that lays out the requirements on financial institutions’ licensing, financial management and reporting, prudential norms, resolution procedures and provisions.
Liberia has a managed floating exchange rate system, with Liberian and US dollars being legal tender. There are no restrictions or limitations placed on foreign investors in converting, transferring, or repatriating funds associated with an investment. Liberian law allows for the transfer of dividends and net profits after tax to investors’ home countries.
Most banking institutions in Liberia can provide some short term trade financing and operating capital to businesses that have good credit records. Banks offer methods such as online banking, electronic or Swift International transfers, remittances, foreign exchange, and mobile transfers or payments. They also offer debit cards, loans, investment solutions, e-products, term deposits, and microfinance.
However, challenges persist in the sector. The CBL noted a high non performing loan rate of 16.4 percent in 2022, above its 10 percent regulatory threshold, as a downside risk. The CBL has been taking action to address non performing loans and instituting monetary policy efforts to strengthen asset quality.
FAB’s expansion into Liberia represents the latest chapter in a broader trend of West African banking integration. The move is expected to enhance trade facilitation between Ghana and Liberia while providing Liberian businesses and individuals with access to more diverse banking services and digital solutions.
The bank has not yet disclosed a timeline for commencing full operations in Liberia or announced the location of its first branch in the country.
