In a keynote speech opening the College of Supervisors of the West Africa Monetary Zone in Monrovia, the Central Bank of Liberia set out Liberia’s current financial sector reform agenda and stressed the need for closer cross-border supervision in the region. The main domestic measures highlighted were a phased increase in the minimum capital requirement for banks from USD 10 million to USD 15 million over 2026-2028, payments system modernization, and legal reforms aligned with West Africa Monetary Zone standards. The speech said Liberia launched the Inclusive and Instant Payment System in 2025, achieving nationwide interoperability, while deployment of the National Electronic Payments Switch is continuing. It also pointed to enactment of the Bank-Financial Institutions and Bank-Financial Holding Companies Act, 2025, which the central bank said is fully aligned with the WAMZ Model Banking Act and strengthens consolidated supervision, corporate governance, capital adequacy, risk management and resolution planning. On asset quality, non-performing loans fell to an estimated 12.58 percent at end-2025 from 17.9 percent at end-2024, but were described as still constraining credit and profitability. In response, supervisory enforcement of loan classification, provisioning and write-off rules has been intensified, alongside work on collateral registries and credit reference systems. Looking ahead, the central bank said it is advancing reforms for non-bank financial institutions, anti-money laundering and countering the financing of terrorism supervision, cybersecurity oversight and operational resilience. It is also preparing a national forum on non-performing loan resolution and said regional cooperation should include joint risk assessment, stress testing, crisis simulation and coordinated resolution planning.
Central Bank of Liberia2026-02-05
Central Bank of Liberia outlines phased increase in minimum bank capital to USD 15 million and wider supervisory reforms
In a speech at the opening of the WAMZ College of Supervisors meeting, the Central Bank of Liberia highlighted a phased rise in minimum bank capital from USD 10 million to USD 15 million over 2026-2028 and broader supervisory reforms. It also pointed to the 2025 launch of the Inclusive and Instant Payment System, a new banking law aligned with the WAMZ Model Banking Act, and tougher action on non-performing loans, which fell to an estimated 12.58 percent at end-2025.