In order to strengthen its powers in the conduct of monetary policy, its supervisory role and to ensure financial stability especially with the multiplicity of banks, the Bank of Sierra Leone Act is being reviewed with technical assistance from the IMF. The Banking Act 2000 is also being reviewed to protect the interests of depositors and shareholders and to further strengthen the Bank’s supervisory and enforcement powers. The Bank of Sierra Leone has broadened its regulatory and supervisory frameworks to include a number of “other financial institutions” in accordance with the provisions of the Other Financial Services Act 2001, which is also being amended to ensure compliance with international regulatory standards. The Bank has issued revised prudential guidelines governing the operations of commercial banks. These guidelines have clearly specified requirements to address issues relating to capital adequacy, asset quality, liquidity, corporate governance, market risks, etc, which will be strictly enforced. The Bank has also adopted the International Financial Reporting  6  BIS central bankers’ speeches  Standards (IFRS) as its financial reporting framework and has requested the commercial banks to do likewise. Furthermore, the Bank of Sierra Leone has adopted two complementary approaches to address governance and risk management issues. Firstly, the Bank has focused on risk factors originating within the financial system and secondly, mechanisms are being adopted and implemented to address risks originating mainly from unlicensed financial institutions. Therefore, the Bank’s supervisory strategy is shifting from compliance – based to risk – focused supervision.
Sheku Sambadeen Sesay: Economic overview, trends and challenges Statement by Mr Sheku Sambadeen Sesay, Governor of the Bank of Sierra Leone, at the Governor’s annual dinner, Freetown, 28 January 2011. *  *  *  His Excellency, The President, Dr. Ernest Bai-Koroma and Mrs Sia Koroma, Honourable, Vice President, Chief Alhaji Sam Sumana and Mrs Khadija Sumana, Honourable Cabinet Ministers, Honorable Speaker and Members of Parliament, Her Lordship, the Chief Justice, Your Worship, the Mayor of the Municipality of Freetown, Your Excellencies, Members of the Diplomatic and Consular Corp, Chairmen of the Board of Directors and Chief Executives of Commercial Banks and Other Financial Institutions, President of the Sierra Leone Chamber of Commerce, Agriculture and Industry, Representatives of the Private sector, Members of the Fourth Estate, Distinguished Ladies and Gentlemen. On behalf of the Board of Directors, Management and staff of the Bank of Sierra Leone, I am honoured by your presence once again at the Bank’s Annual Dinner, my second as Governor of the Bank of Sierra Leone. As our country celebrates 50 years of independence, it is but appropriate that the Bank of Sierra Leone marks this milestone in the company of H.E. The President, the Hon. Vice President, the First Lady and Wife of the Hon. Vice President, along with other dignitaries. Before I proceed, kindly permit me to request you to stand and join us in observing a moment’s silence in memory of our departed colleagues and pensioners who were with us last year. May their souls rest in peace.