Purpose
The Central Bank of Liberia will convene a high-level National Conference on Non-Performing Loan (NPL) Resolution to address one of the most significant structural challenges facing Liberia’s financial sector. The conference seeks to build national consensus around a comprehensive reform agenda that will improve credit access, strengthen financial stability, and support private-sector-led growth and job creation.
Background
Liberia’s banking sector continues to face elevated levels of non-performing loans. The NPL ratio stood at approximately 19.1 percent at end-2024—nearly double the Central Bank’s regulatory threshold—with three banks accounting for more than half of the sector’s NPL stock. While the ratio declined to about 12.9 percent in 2025, much of the improvement resulted from loan write-offs and restructurings rather than sustainable recovery. The persistence of high NPLs constrains lending, weakens bank profitability, and limits access to finance for businesses and households.
The CBL’s diagnostic work, supported by findings from the World Bank Financial Sector Assessment Program (FSAP), identified key drivers of the problem, including weak credit underwriting standards, gaps in credit information infrastructure, slow debt recovery and insolvency processes, governance weaknesses, and the absence of a market for distressed assets.
Conference Objectives
The conference is aimed at bringing together senior government officials, regulators, commercial banks, judiciary, development partners, regional central banks, the private sector, and civil society to:
- Establish a shared understanding of the causes and consequences of NPLs in Liberia.
- Identify reforms needed in banking supervision, credit infrastructure, insolvency, and debt recovery.
- Promote digital finance, financial inclusion, and responsible lending practices.
- Draw on regional and international experiences from countries such as Ghana, Nigeria, Kenya, Egypt, and Tanzania.
- Develop a time-bound National NPL Resolution Roadmap accompanied by a formal Conference Communiqué and implementation framework.
Key Themes
The conference will examine:
- Access to finance and private sector growth.
- Credit underwriting, governance, and NPL drivers.
- Legal and insolvency frameworks.
- Banking supervision and regulatory reform.
- Borrower-lender trust and consumer protection.
- International best practices in NPL resolution.
- Digitalization, fintech, and credit infrastructure.
- Inclusive finance for MSMEs, women, youth, and agriculture.
Expected Outcomes
The conference is expected to produce:
- A National NPL Resolution Policy Roadmap.
- A Conference Communiqué endorsed by key stakeholders.
- Concrete recommendations for legal, judicial, and supervisory reforms.
- A multi-agency implementation and monitoring mechanism.
- A pipeline of technical assistance opportunities for partners including the World Bank, IMF, AfDB, IFC, MCC, and bilateral donors.
Given the strategic importance of Liberia’s financial sector modernization agenda, the Central Bank of Liberia would welcome the support and engagement of all stakeholders for the successful hosting of the conference and the implementation of the outcome.
Convened By
Central Bank of Liberia (CBL), in partnership with the Ministry of Finance & Development Planning, Ministry of Commerce & Industry (MOCI), Liberia Bankers Association (LBA), and the World Bank.