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Guaranty Trust Bank Introduces New Product
In line with its proven image of being an innovative institution, Guaranty Trust Bank (Gambia) Limited has introduced a new product into The Gambia market named Guaranty Trust Bank Bankers Acceptance (GTB BA).
GTB BA is a short-term money market instrument targeted at the Gambian public to widen the array of money market instruments that are available in the country.
It is a product designed for those investors looking for high yield and safe short-term investment outlets.
According to a press release from Guaranty Trust Bank (GTB), the key features of this product include a minimum investment of D50,000 and a varied and flexible investment duration of 30,60,90,180 or 365 days as may be desired by the investor.
The product offers attractive interest rates depending on the amount invested and the duration, and the interest is payable upfront. Upon investment, the investor is issued a certificate of investment which is duly accepted by GTB, hence the term Bankers Acceptance (BA).
At maturity of the investment, GTB would honour (repay the face value) of the notes in accordance with the instructions of the customer.
Repayment would be made through a bankers draft in the name of the investor or a credit to the investor’s account with GTB.
According to the Managing Director of GTB (Gambia), Olalekan Sanusi, the BA is meant to widen and complement the existing menu of money market instruments existing in The Gambia today.
“To enable us introduce the product into the market for the benefit of our valued customers and investors, we applied to the Central Bank of the Gambia for its approval,” he said. “Upon further scrutiny and evaluation of the benefit of the product in assisting to deepen the country’s money market, an approval was granted in September 2006. Since then we have been busy putting structures in place to implement this novel idea.”
The GTB MD further underscored the advantages of the BA.
He explained: “The new product has several benefits for investors. First, they stand to gain more via the higher yield on deposits as interest is payable upfront. The certificate evidencing the investment with the bank issued by GTB to investors can be used as collateral for loan with the bank and for borrowing in other banks.
“Investments in BA can be rolled over at maturity, subject to consent of the investor with respect to tenor and interest rates. More interestingly, GTB will provide a rediscount facility for any investor wishing to cash out from the investment before the maturity date. “With this product, GTB (Gambia) Limited reaffirms its desire and commitment to consistently explore other avenues of serving the banking public better.”
Issuing of money market instruments, such as the BA, does not only serve profitably the banking public, but also takes the financial transaction and the economy of a nation to a different level or higher heights, thereby creating an economic upturn.
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