Page 102 - Ecobank Gambia Annual Report 2020
P. 102
Financial Statements & Annual Report
Notes to the Financial Statements
for the year ended 31 December 2020 (in Thousands of Gambian Dalasis)
11.44 Compliance with banking regulation from the pandemic through both direct and indirect
The Bank was penalized GMD 150,000 (one hundred factors. The Gambian economy (real GDP) is projected
and fifty thousand dalasi) for non-compliance with the to have contracted by 2.1% in 2020 based on statistics.
straight-through process of the clearing system (ACP/ Even though this is expected to rebound to growth of 3.2
ACH) by the Central bank. percent in 2021, there are significant downside risks to
The Bank’s current share structure has not met the this forecast. The Tourism and Hospitality sector which is
regulatory requirement of 20 percent local ownership; believed to contribute up to 20 percent of GDP has largely
the local shareholders hold 2.63% with the remaining non-existent during the 201-2020 tourism season, this
shares held by the parent company-Ecobank Transnational trend is forecasted to continue in the 2020-2020 season.
Incorporated (ETI). However, the Board has initiated the Domestic economic activity was heavily impacted by
process of regularizing the shareholding structure within the lockdown announced by Government in March
the shortest possible timeframe. 2020 and lasted for most part of the year. Government
has announced plans to impose another lockdown from
11.45 Subsequent events March 8th 2021 to contain the second wave the Country
Lending Rates Cap: is experiencing.
The Central Bank has issued a directive to all banks in The bank has weathered the adverse impact of the
December 2020, wherein reference was made to the pandemic in 2020 through the various strategic policy
Monetary Policy Committee (MPC) decision to peg lending interventions at the direction of both the Group and
cap to a maximum of 15%, i.e. 5% above the policy rate. the local Board and Management of Ecobank Gambia.
This has the potential of reducing the Bank income from However, the Bank continues to implement these policies
lending by 10% based on Loan book outstanding as through 2021 and also making them more responsive to
December 31st 2020. changes in the local economic environment as well as
Covid 19 Pandemic the Industry.
The Covid-19 pandemic which first emerged in China During the year, only a single customer has their facility
at the ending of 2019 but has since spread globally restructured as result cashflow challenges emanating
affecting lives and livelihood across the World has not from the fall out of the Covid-19 pandemic. This is linked
spared Africa. The Gambia economy has suffered gravely to the hospitality Industry and resulted into conversion of
an Overdraft facility into a term loan of GMD18 million for
a 2-year period. This restructuring has not resulted into
reduction in interest rate and the customer is current with
his repayment.
100 Ecobank Gambia Annual Report 2020 www.ecobank.com
