The Banking Institute of Liberia (BIL), through the partnership of United States Agency for International Development (USAID) under the Liberia Economic Policy Dialogue Activity (LEPDA), has organized a two-day intensive training for loan officers and credit managers of commercial banks in Liberia.
Speaking Thursday at the opening ceremony, held at the BIL’s Conference hall in Monrovia, the Director General of BIL, Prof. Richard S. Panton, stated that the banking sector plays a pivotal role in facilitating investment for development in any society, and Liberia cannot be an exception.
Director Panton noted that the sector encounters enormous challenges in facilitating investment to engender economic development.
According to him, these challenges many times lead to poor performances of the banks, noting that borrowers of funds from the banks at times default in payment, thereby resulting to litigation.
He underscored that at litigation there are legal technicities that at times lead to delays in judgment and strain on the bank.
“The banks are challenged in that issues of due diligence arise in the award of a loan facility,” Director Panton added.
He asserted that, given these anomalies, the Government of Liberia (GOL) legislated the commercial code following the establishment of the Commercial Court, which is charged with the responsibility of adjudicating matters arising from financial transactions.
“To mitigate these problems, if not eliminate them, USAID-LEPDA in partnership with the Banking Institute initiate this Commercial Code Orientation Training Workshop, targeting loan and credit officers of commercial banks for the purpose of restoring calm and sanity between lenders and borrowers in particular and sound health in the sector in general,” he said.
He acknowledged and expressed appreciation to the Heritage Partners and Associate for facilitating the workshop, as well as the Liberia Bankers Association (LBA) member institutions for responding and nominating participants.
“It is our utmost objective that you participants will accord the training full attendance and active engagement. The outcome of this orientation training will inform the inclusion of the Commercial Code in the BIL Syllabi,” Director Panton stated.
He then encouraged borrowers of loan from commercial banks across the country to learn to pay their loans to ensure that banks meet up with their obligations to depositors.
Meanwhile, the Legal and Regulatory Advisor of USAID-LEPDA, Sue Tatten, said the training of loan and credit officers in the Commercial Code will go a long way in strengthening the loan scheme in the banking sector.
Tatten emphasized that the training is intended to improve the legal standing relating to giving out loans with the legal implication.
She maintained that USAID will continue to support the capacity building of the banking sector in Liberia.
The training brings together more than 20 participants from nine commercial banks and two financial institutions.