BIL embarks On Commercial Code Training

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 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 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 stressed that at litigation, there are legal technicities that at time result to delays in judgment and strain on the banks.

“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 legislated the commercial code following the establishment of the Commercial Court  that 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 appreciated the Heritage Partners and Associate in rendering the workshop the due facilitation and also appreciated 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, adding that the outcome of this orientation training will inform the inclusion of the Commercial Code in the BIL Syllabi," Director Panton pointed out. 

He then encouraged borrowers of loans 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 about the Commercial Code to commercial banks in Liberia will go a long way to strengthen the loan scheme in the banking sector.

Madam Tatten stressed that the training is intended to improve the legal standing relating to loan given with the legal implementation.

She maintained that the USAID will continue to support the capacities building of the banking sector in Liberia.

The training brought together more than 20 participants from nine commercial banks and two financial institutions.