The Bank of Sierra Leone, BSL, has completed the resolution of Union Trust Bank UTB, transferring all its assets and deposits to Rokel Commercial Bank in a move aimed at protecting depositors and maintaining financial stability.
The BSL Governor, Ibrahim Stevens confirmed the action Tuesday, describing it as a regulatory intervention rather than a commercial acquisition.
“This was not a convenient corporate takeover,” Stevens said. “It was a regulatory action taken in line with our mandate to safeguard the banking system and protect depositors.”
According to BSL, UTB had become critically undercapitalised. The bank’s core capital stood at NLe33.82 million against the minimum regulatory requirement of NLe122 million. It was also carrying losses of NLe328.52 million.
Stevens said the financial position left BSL with no option but to intervene. “It was basically an insolvent financial institution,” he stated. “When a bank can no longer meet its obligations and capital requirements, we must act to prevent contagion and protect the public.”
Under the resolution, Rokel Commercial Bank will assume UTB’s deposits and assets. BSL said customers of UTB can continue accessing their funds through Rokel branches and channels without disruption.
The central bank assured the public that Sierra Leone’s banking sector remains stable, noting that the action was targeted at UTB’s specific failure and does not reflect wider systemic risk.
Rokel Commercial Bank officials are expected to issue guidance to former UTB customers on account transition in the coming days.