Good morning Gambia and welcome to Dalasi Update (DUD) after a long break which was good for rest and recovery but bad for the economy as precious hours of productive labour were lost which translates to millions of Dalasi.

How can we cut the number of holidays we have each year or better still can we encourage work on holidays and be paid double time as this will cushion the million of Dalasi lost by way of holidays? We will also like to take this space to salute and wish our magnificent and loyal readership a joyous happy and blissful New Year in 2009 in advance.

Non movers
Trading is very impressive this week as more banks have joined BANK PHB in this enviable rank. This is indeed very commendable as TBL, BSIC and BANK PHB all maintain their last week trading figures with no changes whatsoever.

Gains
SCBG is the only bank this week at trading to make magnificent gains in all currencies by only being a non-mover on the US Dollar and Canadian Dollar as of last week trading figures. This is indeed a good picture and I hope the Bank keeps making those gains at trading against major world currencies as the leading bank in the country.

Mixed picture
All other banks in the Gambia notably AGIB, GTB, ICBG, ACCESS and ECOBANK are registering and posting mixed pictures with some gains, some losses and some non movers in their respective currency dealings this week while no figures are available from FIB this week.

This is the third week running for FIB to be a non performer in our tables of currency analysis meaning no figures are available from them through the Central Bank to the banking community in the Gambia. I hope the situation is once again remedied. In that vein, Market Beat has the privilege to bring to you the Indicative Rates currency tables as we buy and sell in a selection of our banks in selected currencies as dictated by the Central Bank of the Gambia (CBG) as at the 24th.December 2008, thus:


The banking industry continues to show signs of resilience and astute as depicted in the growth in assets, capital and reserves and the declining trend in non-performing loans. Total industry assets increased by 12 billion Dalasi at the end-October 2008, or 25.0 % from a year ago.

Non-performing loans as a ratio of gross loans improved from 13.0% at end-September 2007 to 7.0% as at end-September 2008. The industry’s average capital adequacy ratio stood at 23.0% as at end-September 2008, well above the minimum threshold of 8.0%.
This is a case for a call for an urgent intervention by the authorities notably the Central Bank of the Gambia to ask, control and discipline these banks to chop and reduce the interest rates placed on their respective loan products.

The emergence of many banks on our shores should also translate to more capital, finance and lowering the asking conditions for loans and making them affordable to the Gambian populace. The availability of funds to all and sundry with the prerequisite demands placed on these loan products by banks will have a tricking down ever to the very average Gambian. It will help improve the per capita income of these people once they invest in petty trading or other meaningful businesses.

The million Dalasi question at the moment in this country is why are all these banks coming to this country? The speculative answers range from thus: they are anticipating Gambia’s oil boom to the most grotesque that some rich civil servants and businessmen in some other parts of the globe are looking for a safe heaven to keep their loots. If the later is true which I doubt very well then Gambia is becoming the latest equivalent of Switzerland and UK of Africa. There is nothing wrong in the Gambia banking on its peace and tranquility to make it develop.

There is a price for peace and if people outside the Gambia think they can trust us to keep their monies for them then welcome to The Gambia. UK today is also a safe place for lot of Asian loots the latest being in the presume Ex-Prime Minister of Thailand, Thaksin purport buying of Manchester City FC which is a living daylight example of my discourse.

The Arabs taking their monies for safe keeping in UK is another example and go to Heathrow and Gatwick and see Arabian wealth being brought into the United Kingdom for safe keeping, in the process creating jobs and development for the people of the United Kingdom.

It is mind bugling and as a former security guard at Gatwick I should know and if the assertion is true then I will encourage the Gambia to do more and support and develop our banking industry.

To be continued