According to the release containing the information, the increases are being carried out in two stages; firstly, by end December, 2010, the increase is to be D150 million dalasi ($7.5 million). In the second instance, the increase will be up to D200 million (approx. $10 million) by the end of 2012

The notice of increase adds that new applications for banking business are required to meet the new capital requirement with immediate effect.

According to the Central Bank, the action has been taken in view of its desire to deepen the financial sector and "in pursuance of the Gambia’s Vision 2020 aim of transforming the country into a financial centre..."

In this respect, the Central Bank states that it has endeavoured to create an enabling environment for the development of the financial system and, "As part of this process the Central Bank undertakes periodic reviews of the minimum capital requirement of banks."

Thus, following the latest review, it states that the "Bank has increased the minimum capital requirement for banks in two stages from its current level of D60 million..."

The Gambia, which used to be serviced by less than four commercial banks until a few years ago, has in recent times been affected by the phenomenon of an upsurge in the number of banks registered here, mainly from Nigeria. At last count, the banks numbered 11 but more are said to be in the pipeline so that up to 15 banks are envisaged, according to official sources.

In its latest report on the country, the IMF mission on the Gambia warned that the upsurge poses the risk of overstretching the central bank’s supervisory role over the banks and causing it to make a wrongful allocation of scarce resources.

Hitherto, the minimum capital requirement was pegged at D60 million (approx,. $3million).