Freetown, 18th June, 2026 – The Bank of Sierra Leone (BSL) has completed the resolution of Union Trust Bank Limited (UTB), transferring its viable business to Rokel Commercial Bank (RCB) after years of capital shortfalls and mounting losses left the institution insolvent.
UTB’s financial troubles stemmed from its persistent failure to meet the minimum paid‑up capital requirements under the Banking Act, 2019. In 2019, the threshold was raised from Le30 billion to Le85 billion, later revised to NLe270 million in 2024 with phased compliance through 2027.
By December 2025, UTB’s capital stood at just NLe33.82 million, far below the NLe122 million required. The bank had also accumulated retained losses of NLe328.52 million, leaving it with a negative capital position.
To comply, UTB would have needed NLe450.52 million by end‑2025, rising to NLe598.52 million by 2027.
Independent reviews by EY Ghana (2024) and Crowe Decker & Partners (2025) confirmed negative Tier 1 capital, deteriorating asset quality, and no realistic prospects for recapitalisation.
BSL placed UTB under Enhanced Supervision in 2020, deploying a Resident Examiner and issuing directives to inject capital, strengthen governance, and restore profitability. Despite five years of oversight, shareholders failed to recapitalise or produce a credible recovery plan.
On December 8, 2025, UTB was formally placed under resolution. Key steps included: Market sounding and investor engagement, development of a Purchase and Assumption (P&A) framework aligned with IMF standards, government commitment to cover funding gaps to protect depositors and selection of Rokel Commercial Bank as acquirer after a fit‑and‑proper assessment.
Under the P&A structure Performing assets and deposits were transferred to RCB. Non‑performing assets were retained and assigned to Kreston Accountants SL Ltd for recovery and wind‑down and all UTB staff were transferred to RCB, with the Government funding End of Service Benefits to ensure fairness and stability.
The transfer was successfully completed on June 16, 2026. BSL acted under the Banking Act, 2019, citing: Section 69(3)(c) — insolvency, Section 69(3)(e) — unsafe and unsound operations, Section 69(3)(g) — failure to comply with supervisory directives and Section 68(2) — mandate to protect depositors and preserve financial stability.
The resolution achieved four key objectives: Protecting depositors and ensuring continuity of services, preserving confidence in the banking sector, maintaining financial stability and minimising systemic losses.
BSL Governor stressed that UTB had been given “substantial time, regulatory support, and opportunities to restore its financial condition,” but resolution was the only prudent course after years of capital deficiencies and losses.
The successful transfer to RCB marks a milestone in Sierra Leone’s financial sector reform agenda, reinforcing resilience and stability in the banking system.
