By Sallay Kamara
Sierra Leone’s central bank has moved to resolve Union Trust Bank (UTB), with Rokel Commercial Bank (RCB) assuming control of its operations after years of financial distress at the indigenous lender.
The Bank of Sierra Leone (BSL) said UTB ceased operations on June 16, with the transition to RCB taking effect the following day, according to Deputy Governor for Financial Stability Alfred W. B. Samah.
Samah told staff that the intervention followed prolonged failure by UTB to meet regulatory capital requirements, dating back to 2018.
“If you sold everything that Union Trust Bank owned and added all the proceeds together, there still would not be enough money to pay all customers their deposits,” he said.
The central bank said it had repeatedly requested capital restoration plans from UTB, but the bank’s financial position continued to deteriorate, with retained earnings turning negative.
Concerns over UTB’s stability were also raised by development partners, including the International Monetary Fund and the World Bank. A World Bank-funded assessment in 2024 produced findings that officials described as “not encouraging”.
Samah said the action taken by the central bank constitutes a resolution process rather than liquidation, aimed at preserving financial system stability and protecting depositors.
“Resolution is not liquidation. It is a process whereby the central bank intervenes in a severely impaired institution to restore stability without disrupting the financial system,” he said.
UTB had been placed under caretaker management in December 2025, shortly after the death of its founder, James Sanpha Koroma, a former governor of the Bank of Sierra Leone.
Founded in 1995, UTB was Sierra Leone’s first indigenous commercial bank and played a significant role in expanding access to banking services in the country’s post-war economy.
However, in recent years the bank struggled with capital adequacy and governance challenges, prompting regulatory scrutiny.
The takeover by Rokel Commercial Bank, one of the country’s largest commercial banks, is intended to ensure continuity of banking services and maintain confidence in the financial sector, officials said.
UTB shareholders have criticised the intervention, describing it as a “criminal takeover” and calling for greater transparency.
They say they secured new capital from a local investor within a week of the central bank’s intervention in December 2025 and submitted documentation to regulators, but have yet to receive a formal response.
The shareholders have initiated legal action and expressed concern over delays in court proceedings.
The central bank has not publicly responded to the shareholders’ claims.
The resolution of UTB marks one of the most significant interventions in Sierra Leone’s banking sector in recent years, highlighting ongoing efforts by regulators to strengthen financial stability and enforce prudential standards.
