Central Bank Executive Governor-designate Milton Weeks has said despite increased activities of commercial banks in the country, the lack of access to credit still remains a key challenge to Liberia's enterprise development.
Weeks said recent information on access to credit services to local communities in Liberia reveals the inadequacy of access to basic financial services, such as savings, credits, remittances, insurance and payment, among others. Weeks told Senators Thursday during confirmation hearing at the Capitol Building in Monrovia that there are evidences of some form of informal financial transactions and activities such as credit clubs that could be transformed into formal financial institutions or linked to the mainstream financial system. He recommended mobile technology which, according to him, has already been introduced in the Liberian society, but not being utilized to its full potential as a major tool which can be used to link the informal sector of financial transactions to the mainstream financial system. He said mobile technology can be utilized if government, for example, remits money or vouchers directly to mobile wallets not only for government employees, but when it provides subsidies to vulnerable groups. "This will enhance financial inclusion, especially for the unbanked sectors of the Liberian population," Weeks emphasized. Weeks is of the opinion that clean title to land will also enable people to use land as collateral for loans, noting that the lack of proper title to land is another major impediment in accessing credits. Weeks also suggested the development of a robust and full-fledged credit reference registry as one of the primary areas that can also be developed to enhance access to credit in the country.