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Former Union Trust Bank Executive Director Claims Unfair Treatment by Central Bank


The former Executive Director of Union Trust Bank (UTB),Wusu Bai Koroma, claimed that the Bank of Sierra Leone treated them unfairly when their bank was liquidated. Koroma made this claim during an interview with Ecko Media.

The former Executive Director expressed deep disappointment over the closure, asserting that the indigenous financial institution was “unfairly treated” despite emerging from a prolonged period of financial distress and attracting viable recapitalisation offers.

During the interview, Koroma stressed UTB’s unique position in the nation’s financial sector as the only fully indigenous bank in Sierra Leone.

“We were the only indigenous bank in Sierra Leone, meaning we were the only bank owned and managed by Sierra Leoneans,” Koroma stated, noting that the bank’s stakeholders comprised both local corporate entities and individual Sierra Leonean citizens.

When questioned about why these shareholders failed to mobilise a bailout package before the Central Bank intervened, Koroma clarified that while they could not coordinate in time, internal conflict was not the cause. Instead, he pointed to a challenging six-year period of financial losses that had severely dampened investor confidence.

According to the former Executive Director, the bank’s leadership had recently managed to reverse its fortunes through rigorous restructuring.

“We took some prudent measures, we made a lot of sacrifices for the six years we were making losses,” Koroma explained. “But we turned things around.”

He noted that as the bank returned to profitability, interest from potential investors surged. In the months leading up to the liquidation, UTB reportedly received multiple financial injection offers from both domestic and international corporate entities and private investors.

Koroma revealed that UTB had forwarded concrete investment proposals to the Central Bank aimed at meeting the required minimum capital threshold. However, he claimed these submissions were entirely ignored by the regulator.

“We had proposals that we sent to the Central Bank. They were not responded to, they were neither acknowledged… they were never even addressed,” Koroma said, adding that the Central Bank failed to engage with the interested investors to review their terms.

When asked how he felt seeing the institution slip away, Koroma did not mince words: “Unfairly treated. As a Sierra Leonean, as a Sierra Leonean business, unfairly treated.”

The Bank of Sierra Leone has maintained that its actions against non-compliant financial institutions are strictly regulatory measures intended to protect depositors and maintain the stability of the country’s financial system.

 



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Bank of Sierra Leone Raises Monetary Policy Rate to 17% Over Rising Inflation


The Bank of Sierra Leone has increased its Monetary Policy Rate (MPR) by 0.25 percentage points to 17.0 percent, citing rising inflationary pressures and heightened global uncertainty driven by geopolitical tensions in the Middle East.

The decision, reached by the Monetary Policy Committee (MPC) at its meeting on 12 June 2026 and approved by the Bank’s Board of Directors on 15 June, took effect on 17 June 2026. The Standing Lending Facility Rate and Standing Deposit Facility Rate were also adjusted upwards to 21.0 percent and 11.5 percent, respectively.

Governor Dr. Ibrahim L. Stevens chaired the MPC meeting, where members reviewed recent global and domestic macroeconomic developments and assessed risks to inflation and growth.

The Committee noted that the global economic outlook has become increasingly uncertain, largely due to geopolitical tensions in the Middle East. The disruption of energy supply routes, particularly the closure of the Strait of Hormuz, has adversely affected global energy markets, increased shipping costs, and weakened investor confidence.

The International Monetary Fund, in its April 2026 World Economic Outlook, revised global growth projections downward to 3.1 percent for 2026, from 3.3 percent projected in January. Inflationary pressures have intensified globally, driven by rising crude oil prices, higher food costs, and elevated transportation costs.

Headline inflation in Sierra Leone has continued its upward trajectory since the first quarter of 2026, increasing from 8.05 percent in February to 10.24 percent in March and 10.83 percent in April. The Committee attributed this to pass-through effects from higher global oil prices and tax measures introduced under the Finance Act 2026.

The MPC assessed that risks to the inflation outlook remain tilted to the upside, particularly amid persistent external cost pressures.

Domestic economic activity is expected to moderate, with real GDP growth projected at 4.0 percent in 2026, down from 5.0 percent in 2025. The moderation reflects the adverse impact of disruptions in global energy markets and their transmission to domestic production through higher input costs and supply constraints.

The Bank’s high-frequency Composite Index of Economic Activities indicated a decline in economic activity in the first quarter of 2026 relative to the previous quarter. However, a gradual recovery is expected, supported by the Feed Salone Programme and other pro-growth government initiatives.

External sector performance improved in the first quarter, with a reduction in the trade deficit driven by significantly lower import bills. Gross international reserves declined but remain adequate to cover approximately 2.1 months of imports of goods and services. The exchange rate remained broadly stable.

The overall fiscal deficit widened in the first quarter of 2026 compared to the same period in 2025, largely due to lower government revenue and a slight increase in expenditure. However, the primary balance recorded a surplus, supported by efforts to rationalise discretionary spending.

Both Reserve Money and Broad Money expanded in the first quarter relative to 2025, though the Reserve Money target under the IMF Extended Credit Facility programme was met. Credit to the private sector also expanded and remained within programme targets.

The banking sector remained stable, profitable, and sufficiently capitalised, with key financial indicators within regulatory limits. Non-performing loans remained below the prudential limit of 10 percent, though asset quality showed some deterioration.

The Committee expressed concern over the high concentration of commercial bank assets held in government securities, which may crowd out private sector lending. Additionally, the rapid expansion of Digital Financial Services and mobile money has exposed the sector to fraud and identity theft risks, underscoring the need for robust regulatory oversight.

The MPC concluded that the balance of risks has shifted markedly, with the outlook for price stability increasingly skewed to the upside. A moderate tightening of monetary policy was deemed necessary to contain second-round effects, reinforce policy credibility, and ensure inflation returns to a downward path over the medium term.

The Committee will continue to closely monitor the Middle East conflict and its spillover effects on energy markets, supply chains, financial conditions, and domestic price and output dynamics.

“The MPC stands ready to recommend timely policy action, as needed, to preserve macroeconomic stability,” the statement read.

The next MPC meeting is scheduled for 24 September 2026.



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Why Union Trust Bank Was Closed And Transferred to Rokel Commercial Bank


The Bank of Sierra Leone (BSL) has provided detailed reasons behind the resolution of Union Trust Bank Limited (UTB), describing the move as a necessary regulatory intervention aimed at protecting depositors, maintaining confidence in the banking sector, and safeguarding financial stability.

Speaking at a press conference held today at the Bank of Sierra Leone headquarters in Freetown, Governor Dr. Ibrahim L. Stevens explained that UTB had become insolvent after years of failing to meet the minimum capital requirements prescribed under the Banking Act, 2019.

According to the Governor, UTB’s paid-up capital stood at only NLe33.82 million as of December 2025, significantly below the required NLe122 million under the first phase of the banking sector capital framework. The bank had also accumulated retained losses of NLe328.52 million, resulting in a severely negative capital position.

Dr. Stevens noted that the Bank of Sierra Leone had engaged extensively with UTB over several years to help restore its financial health. In September 2020, the institution was placed under Enhanced Supervision, with a Resident Examiner deployed to closely monitor its operations.

Despite repeated directives requiring shareholders and management to inject additional capital, strengthen governance, improve asset quality, and restore profitability, the bank was unable to recover.

An independent diagnostic and forensic review conducted by Ernst & Young Ghana in September 2024 confirmed that UTB’s financial condition had deteriorated significantly. The review found negative Tier 1 capital, worsening asset quality, failure of previous restoration plans, and no realistic prospects for recapitalisation under the existing ownership structure.

The Governor said that after exhausting all reasonable recovery options, the Bank of Sierra Leone concluded that resolution was the only viable course of action.

To facilitate an orderly resolution, the central bank conducted market-sounding exercises, engaged potential investors, worked closely with the International Monetary Fund (IMF), and secured government support to bridge any funding gap required to protect depositors.

Following a fit-and-proper assessment, Rokel Commercial Bank (RCB) was selected as the acquiring institution.

On December 8, 2025, UTB was formally placed under resolution for a six-month period under the Banking Act, 2019. A Caretaker Management Team was appointed, while Kreston Accountants SL Ltd was engaged to facilitate the transfer process and manage the bank’s non-performing assets.

Under the Purchase and Assumption (P&A) framework adopted by the Bank of Sierra Leone, UTB’s performing assets and customer deposits have been successfully transferred to Rokel Commercial Bank. Non-performing and impaired assets were excluded from the transfer and remain under the management of Kreston Accountants SL Ltd for recovery and orderly wind-down.

The Governor also announced that all UTB staff would be transferred to Rokel Commercial Bank. Additionally, the Government of Sierra Leone has agreed to fund the payment of End of Service Benefits for all affected employees, citing social stability and employee welfare considerations.

The transfer process was successfully completed on June 16, 2026.

Dr. Stevens emphasized that the resolution was not a conventional corporate takeover but a regulatory action carried out under the provisions of the Banking Act, 2019, and aligned with international best practices for bank resolution.

He concluded that the successful completion of the transfer marks an important milestone in strengthening the resilience, stability, and credibility of Sierra Leone’s banking sector while ensuring the protection of depositors and the broader financial system.



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Union Trust Bank Ceases Operations as Rokel Commercial Bank Completes Acquisition


Union Trust Bank (UTB) has officially ceased operations, with Rokel Commercial Bank (RCB) completing its acquisition of the struggling indigenous bank on June 17, 2026.

The Bank of Sierra Leone (BSL) announced the takeover during a staff meeting on June 16, with Deputy Governor for Financial Stability Alfred W. B. Samah informing employees that UTB would cease to exist effective that day . RCB will assume control of UTB’s operations starting June 17.

The central bank’s decision follows years of regulatory intervention, with Samah revealing that Union Trust Bank had been unable to meet capital requirements since 2018.

“The state of Union Trust Bank today is so poor that one could meaningfully argue that it should be handed over to a liquidator,” Samah told staff. He disclosed that the bank’s net worth had deteriorated to approximately negative Le515 million and projected obligations had reached Le270 billion up to 2027.

“If you sold everything that Union Trust Bank owned and added all the proceeds together, there still would not be enough money to pay all customers their deposits,” he stated.

The central bank had requested capital restoration plans on multiple occasions, but retained earnings became negative and the bank’s financial position deteriorated significantly. Development partners including the IMF and World Bank shared concerns about UTB’s financial health, with the World Bank funding an assessment in 2024 that produced “not encouraging” findings.

The decision represents a resolution action rather than liquidation, Samah clarified. “Resolution is not liquidation. Resolution is a process whereby, when the financial condition of a financial institution becomes severely impaired, the Central Bank intervenes, takes control of the institution, and seeks to restore stability without causing disruption to the financial system.”

The central bank had placed UTB under caretaker management in early December 2025, shortly after the passing of the bank’s founder, Dr. James Sanpha Koroma. Dr. Koroma, a former Bank of Sierra Leone Governor, established UTB in 1995 as Sierra Leone’s first indigenous commercial bank.

Union Trust Bank shareholders are calling for justice and transparency regarding what they describe as a “criminal takeover.” The shareholders maintain that within one week of the central bank’s intervention, they secured the required capital through a Sierra Leonean business investor and submitted relevant documentation to the Bank of Sierra Leone in December 2025.

However, they state that no formal acknowledgment or substantive response has been received from the central bank, with more than six months having passed without resolution.

The owners have sought legal redress through the courts but remain concerned about the lack of progress in proceedings.

Meanwhile, internal memoranda indicate that RCB staff will be deployed across all UTB branches. A joint cash count exercise will be undertaken, with branch heads instructed to hand over vault keys to RCB team leads witnessed by Bank of Sierra Leone staff.

Staff have also been directed to wear Rokel Commercial Bank dress code from June 17, with female staff to wear white blouses with navy blue suits and male staff to wear white shirts with navy blue or black ties.

The central bank has maintained that no staff member has been disadvantaged during the process, with employees continuing to receive full salary, leave benefits, rent allowances, and other approved benefits.



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NRA Boss Urges Fiscal Self-Reliance as World Bank Support Plunges from $100M to Zero


Jeneba Bangura, Commissioner General of Sierra Leone’s National Revenue Authority (NRA) has warned thattraditional aid flows to developing nations are drying up, revealing that the country’s annual budget support from the World Bank has plummeted from $\text{\$100}$ million to a projected zero in just two years.

Bangura made the sobering disclosure during a high-level panel at the IMF–World Bank Annual Meetings, underscoring the intense fiscal pressure now driving an aggressive push for self-reliance in Freetown.

“In the past, we received about $100 million a year in budget support from the World Bank,” Bangura stated. “But in 2024, that dropped to $40 million, and as I speak for 2025, we may not receive anything at all.”



She noted that other key partners, including the UK’s FCDO, have followed a similar trend, although the European Union has resumed limited support.

Bangura explained that these sharp cuts often occur after national budgets have been finalized, forcing the government to scramble to “reprioritize and rearrange spending.” This abrupt loss of funding, she said, “intensifies the demand for more domestic revenue.”

In response, Sierra Leone has embarked on a drastic domestic revenue mobilization campaign. Bangura disclosed that the government raised its revenue target by 46 percent in 2024 and is projecting a further 30 percent increase in 2025. Oversight has been intensified, with the finance ministry now monitoring tax collection on a daily basis.

The panel, titled “Taxing Smarter after Aid,” explored the difficult path for countries like Sierra Leone as traditional aid flows dry up. The discussion also touched on the constraints of international lending programs, with experts from Tax Justice Network Africa arguing that IMF conditions limit countries’ policy flexibility and can reinforce inequality.

While Ceren Ozer, a World Bank manager, pointed to nearly $7 billion in active concessional lending projects aimed at boosting domestic revenue, the immediate budget crisis described by Bangura painted a stark picture of the challenges on the ground.

 

 



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Union Trust Bank Shareholders Challenges Bank of Sierra Leone Over RCBank Takeover


Shareholders of Union Trust Bank (UTB) have formally petitioned the Bank of Sierra Leone (BSL), requesting an immediate suspension of the central bank’s decision to place UTB under a caretaker management and approve Rokel Commercial Bank (RCB) as its acquirer.

The petition, filed by ACE Legal Partners on behalf of major UTB shareholders and consultant Dr. Jonathan Bangura, alleges significant statutory and constitutional violations in the process that led to the decision.

The petition was submitted in response to BSL’s public notice on December 8, 2025, which declared that UTB would be placed under caretaker management and that RCB would take over the bank.



According to the petitioners, the central bank’s actions contravene the Banking Act, 2019, particularly Section 69, which mandates a 45-day period for UTB to submit a capital restoration plan. They claim that BSL shortened this statutory period to just 30 days, disregarding the required timeframe.

In the petition, which is addressed to the Governor of the Bank of Sierra Leone, the shareholders argue that BSL’s letter of November 14, 2025, directed UTB to submit its capital restoration plan within 30 days. However, they assert that this period was inadequate, as it fell short of the 45 days required under the Banking Act.

The petition also highlights that the central bank failed to honor even the shortened 30-day period. According to the petitioners, the letter, received on November 18, 2025, set a deadline of December 18, 2025, for the submission. However, the resolution date in the BSL’s public notice was approximately 20 days later, in violation of both statutory and constitutional principles.

The petitioners claim that this deviation from the Banking Act not only constitutes a statutory breach but also amounts to a constitutional illegality. Citing Section 105 and Section 171(15) of the Sierra Leone Constitution, they argue that any law inconsistent with the constitution is void and of no effect. As such, the petitioners contend that BSL’s actions, which diverged from the Banking Act, are unconstitutional.

ACE Legal Partners, representing the shareholders, state that they act on behalf of several prominent UTB stakeholders, including Messrs. Sabanor Trust Investment Fund, Aureol Insurance Company, Mr. Mohamed Kwanza, Mr. Yayah Nesser, Ms. Yema Woobay, and Mr. Wusu B. Koroma. Additionally, they represent Dr. Jonathan Bangura, UTB’s consultant and the individual entrusted by the late founder and CEO of UTB, Mr. Sanpha Koroma, to oversee the bank’s succession and fiduciary transition.

The petitioners have outlined three primary requests in their letter to the Bank Governor. First, they call for an immediate suspension of the BSL’s December 8 public notice, asking that all receivership, resolution, and acquisition processes be put on hold pending a transparent and good-faith review.

Second, they demand an urgent meeting involving Dr. Bangura, key UTB stakeholders, the Director of Banking Supervision, and other senior BSL officials to engage substantively on the proposed roadmap for the bank’s future. Finally, they seek approval from the central bank to proceed with UTB’s recapitalization and restructuring plan, which they assert should be carried out under BSL’s direct supervisory oversight.

In support of their position, the petitioners reference several provisions of the Banking Act, 2019, including Sections 116(1), 59, 66, 67, and 69. They also invoke constitutional principles of “fair administrative actions” and common law doctrines such as “legality, reasonableness, proportionality, and procedural fairness.”

The petitioners have expressed their hope that the Bank Governor will give “kind consideration” to their requests and allow for a swift and transparent review of their proposed recapitalization plan under the supervision of BSL. As of the time of writing, the Bank of Sierra Leone has not publicly responded to the petition.

The petitioners argue that the statutory instruments regulating public entities, such as the Bank of Sierra Leone, have quasi-constitutional effect, as they define the scope of executive discretion. They conclude that any deviation from the Banking Act would constitute not just a statutory breach, but a constitutional illegality, with far-reaching consequences for the integrity of the country’s financial system.



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Sierra Leone Commercial Bank Signs Strategic Partnership With Republic Bank Ghana


Sierra Leone Commercial Bank (SLCB) has taken a significant step toward regional integration and institutional strengthening by signing a technical cooperation agreement with Republic Bank Ghana.

This strategic partnership aims to enhance SLCB’s operational capacity and accelerate its transformation into a modern, innovation-led financial institution within West Africa.

More than just a ceremonial accord, the agreement signifies a commitment to deep technical collaboration, focusing on knowledge exchange, capacity building, and the enhancement of expertise. These elements are core to SLCB’s long-term vision of becoming a resilient bank that meets diverse financial needs across the region.



The official signing ceremony took place in Accra, Ghana, and featured key leadership figures from both banks. Republic Bank Ghana was represented by its Managing Director, Board Chairman, and other senior executives, while SLCB’s delegation included its Board Chairman, Managing Director, Director of Finance, and Head of the Company Secretariat, highlighting the strategic importance of the partnership.

Through this alliance, SLCB aims to leverage Republic Bank Ghana’s extensive experience and technical knowledge to drive excellence in service delivery, digital transformation, and sustainable banking practices. The collaboration is expected to lead to improved product offerings, more efficient systems, and greater customer satisfaction within Sierra Leone’s banking sector.

Both banks reaffirmed their shared vision of promoting higher standards in regional banking. The partnership is anticipated to yield mutual benefits, strengthening institutional performance and contributing to broader economic development in both Sierra Leone and Ghana.

This technical cooperation marks a pivotal moment in SLCB’s growth journey, signaling its readiness to embrace regional opportunities and deliver lasting value to customers, employees, shareholders, and the financial ecosystem at large.



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Bank of Sierra Leone Announces Reduction in Monetary Policy Rate to Boost Economic Growth


The Monetary Policy Committee (MPC) of the Bank of Sierra Leone (BSL) has reduced the Monetary Policy Rate (MPR) by 1 percentage point to 23.75%, effective June 24, 2025, in a move aimed at lowering borrowing costs and stimulating private sector investment.

The decision, approved by the BSL Board of Directors on June 23, follows a review of global and domestic economic conditions. Governor Dr. Ibrahim L. Stevens announced corresponding adjustments to the Standing Lending Facility Rate (SLFR) and Standing Deposit Facility Rate (SDFR), now set at 26.75% and 17.25%, respectively.

The MPC’s decision comes amid a cautiously optimistic outlook for Sierra Leone’s economy, underpinned by a significant decline in domestic inflation from 13.78% in December 2024 to 7.55% in May 2025. This drop, attributed to prudent monetary policies, fiscal discipline, stable fuel prices, and a relatively steady exchange rate, has created room for the BSL to ease monetary policy to support investment and growth.



Globally, the economic landscape remains challenging, with the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), and the World Bank revising down their 2025 global growth forecasts to 2.8%, 2.9%, and 2.3%, respectively. These downgrades reflect trade policy shifts and geopolitical tensions, which could disrupt supply chains and exert inflationary pressures on Sierra Leone’s economy. Despite these risks, the MPC noted that global inflation is expected to decline in 2025 and 2026 due to tighter monetary policies and falling commodity prices.

Domestically, Sierra Leone’s economy is projected to grow by 4.5% in 2025, up from 4.0% in 2024, driven by strong performances in mining, agriculture, and services. The MPC anticipates growth to rise further to 4.7% in 2026 and 2027, supported by government initiatives to enhance agricultural productivity. However, external risks such as global supply chain disruptions and trade tensions could pose challenges, prompting calls for policies to bolster economic resilience.

The MPC highlighted mixed developments in Sierra Leone’s external and fiscal sectors. The trade deficit widened in the first quarter of 2025 due to higher import costs and lower export earnings, while foreign exchange reserves fell to cover just 1.8 months of imports. On the fiscal front, the budget deficit grew in early 2025 due to lower domestic revenue and higher interest payments, though reduced spending on goods, services, and subsidies narrowed the primary deficit. A decline in the 364-day Treasury Bill rate has eased borrowing costs, providing fiscal space for the government.

Monetary developments showed a contraction in reserve money but moderate growth in broad money (M2) in the first quarter. While credit to the private sector increased, it remains insufficient to drive significant investment. The MPC stressed the need for a more inclusive credit environment to support private sector growth.

In its statement, the MPC emphasised that the rate cut aims to encourage private sector credit, reduce borrowing costs, and promote sustainable growth while maintaining vigilance over inflationary risks. The next MPC meeting is scheduled for 25 September 2025.



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Rokel Commercial Bank Extends Warm Eid al-Adha Greetings to Customers and Partners


As the sacred festival of Eid al-Adha is celebrated across the country, Rokel Commercial Bank (SL) Ltd, proudly known as the “Bank of Choice,” has extended heartfelt greetings to its valued customers, staff, and partners.

In a message marking this important occasion, the bank emphasized that Eid al-Adha symbolizes sacrifice, compassion, and unity—values that resonate deeply with Rokel Commercial Bank’s commitment to serving its clients with integrity and excellence.



“We celebrate these principles every day through our dedication to providing trusted and reliable financial services,” the bank stated.

Rokel Commercial Bank wished peace, prosperity, and abundant blessings to all during this festive period, expressing gratitude for the continued trust and partnership of its customers.

Eid Mubarak from Rokel Commercial Bank — your trusted financial partner



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