STATEMENT BY THE GOVERNOR
OF THE BANK OF SIERRA LEONE
ON THE INAUGURATION OF
HOME FINANCE COMPANY (HFC) MORTGAGE AND SAVINGS, (SL) LIMITED
ON
FRIDAY 10TH JULY, 2009
His Excellency the President, Dr. Ernest Bai Koroma, His Excellency the Vice President, Chief Sam Sumana, Hon. Ministers of Government Members of the Diplomatic Corps Chairman, Board of Directors of HFC Mortgage & Savings (SL) limited, Management and Staff of HFC Mortgage & Savings (SL) Limited, Heads of Banks and Other Financial Institutions Members of the Fourth Estate Distinguish guests, Ladies and Gentlemen.
I am delighted to be here this morning not only to participate in the official opening of the Home Finance Company (HFC) Mortgage and Savings (SL) Limited but to also witness the erection of one more pillar in the economic and social infrastructure of Sierra Leone, which is, mortgage lending. Let me commend the National Social Security and Insurance Trust for the foresight displayed in their investment in HFC Mortgage and Savings (SL) Limited. We congratulate the management of NASSIT for pioneering this venture, which will add to other initiatives already in place, and being considered, to address the burning issue of shortage in supply and financing of housing. For us, this is yet another demonstration of your unreserved
commitment to being the catalyst for socio-economic development in Sierra Leone. Your Excellencies, Distinguish Guests, Ladies and Gentlemen, as a Central Bank, we view the establishment of the HFC Mortgage and Savings (SL) Limited as a further step in the development of the financial system, which is a key priority in our mission. When we issued licenses to HFC Mortgage and Savings (SL) Limited on the 1st September, 2008, it was with the conviction that their services will provide a unique opportunity to a host of
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our compatriots who, hitherto lacked the ability to build or own houses, but nursed a strong desire to do so. We were also comforted by the fact that this company, established with the sole aim of providing Sierra Leoneans, access to facilities and resources that would enable them own houses, is also a vista of hope for a future that is more predictable for our young and upcoming citizens. Today, there is no doubt that the demand for housing especially in our urban communities surpasses the supply. This situation is likely to spur demand for mortgages. We hope HFC Mortgage and Savings (SL) Limited can face the challenge of providing access to finance to help bridge the gap between supply and demand. However, we are determined to ensure prudence in their
operations in a bid to help protect depositors and maintain financial and macroeconomic stability. Your Excellencies, distinguish guests, ladies and gentlemen, we have already issued prudential guidelines to HFC Mortgage and Savings (SL) Limited and will continue to provide a robust supervisory regime in accordance with state laws and international best practices to maintain operational stability and heed the experiences emerging from the ongoing financial melt-down, which we all know, started in the mortgage and housing market. Mr. Chairman, distinguish guests, the process of financial sector globalization has resulted in the financial industry undergoing major changes. This development, coupled with the expansion of banking and other financial institutions with their new products, pose serious challenges for the regulator. In order to meet these challenges, the Bank of Sierra Leone is positioning itself to provide effective and efficient regulatory and
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supervisory services to these institutions. The Bank has developed a threeyear Medium Term Strategy in which a strong emphasis is placed on building the capacity of the Banking Supervision Department to enable staff of this department supervise the financial system effectively and efficiently. The Bank is also reviewing the legal and regulatory framework governing the financial system with a view to making it compliant with international best practices. To this end, the Bank has recently piloted the enactment of the Home Mortgage Finance Act 2009, which paves the way for the operation of Home Mortgage Financing in Sierra Leone. This is a vital step in ensuring that the operation of HFC Mortgage and Savings (SL) Limited will be based on accepted and transparent principles, affording protection to all participants in the scheme. At the Central Bank, we have established the financial guidelines for the operations of the scheme and have in place the supervisory and regulatory framework to ensure its sound operation. Furthermore, we are working tirelessly to get the Stock Exchange Market fully operational before the end of 2009. This will avail the company with easier access to long term capital by issuing securities to the public. It is hoped that this will provide more Sierra Leoneans both in the country and the Diaspora the opportunity to participate and access the investment opportunities in the country. I want to take this opportunity to wish this maiden company unqualified success in its endeavour and as Governor, I will continue to provide avenues for guidance, clarification and above all sound advice. It is the Bank’s hope that in the not too distant future, HFC Mortgage and Savings will contribute greatly in changing the entire landscape of Sierra Leone and create a middle class society. I pledge the Bank of Sierra Leone’s
continued and unwavering support in helping to achieve this success in the years ahead.
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Your Excellencies, distinguish guests, ladies and gentlemen, I thank you for your attention.
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