Guidelines for Other Deposit-Taking Institutions

OPERATING GUIDELINES FOR OTHER DEPOSIT-TAKING INSTITUTIONS BANK OF SIERRA LEONE DECEMBER 2011

2 Table of Content No. Page 1 Authority 1 2 Definition 1 3 Application for Licence 1 4 Designation of Spokesperson 2 5 Information on Other Taking Deposit Institution 2 6 Directors and Senior Management 3 7 Information on Controlling persons 3 8 Business Plan 4 9 Financial Obligations 7 10 External Auditors 7 11 Sources of Funds 7 12 Prudential Requirements 7 13 Reporting Requirements 11 14 Display of Licence and Interest Rates 13 15 Other Requirements 13 16 Prohibitions 13 17 General 14

3 GUIDELINES FOR THE OPERATIONS OF OTHER DEPOSIT-TAKING INSTITUTIONS 1.0 AUTHORITY These guidelines are issued by the Bank of Sierra Leone (hereinafter referred to as “the Bank”) in exercise of the powers conferred on it by Section 53 of the Other Financial Services Act 2001 (hereinafter referred to as the OFS Act). 2.0 DEFINITION a) Other Deposit-Taking Institutions (ODTIs) include deposit-taking micro finance institutions, community banks, savings and loans scheme and any other institution accepting deposit from the general public, other than the commercial banks. b) Other Deposit-Taking Institution means an institution engaged in the business of: (i) Accepting deposits which are not covered in the Banking Act; (ii) Using such deposits wholly or partly to grant loans to a borrower (either an individual or firm) or to a group of borrowers to be used to finance small-scale production, commerce or service provision activities, and such loans are usually characterized by securities such as group guarantees and/or compulsory savings; and (iii) Transacting such other activities as may be prescribed by the Bank of Sierra Leone. b) Capital has the meaning assigned to it in ODTI Form 3. 3.0 APPLICATION FOR LICENCE a) Licence application requirements are prescribed by the Other Financial Services Act 2001, (Section 4 (2) and the ‘Schedule’). b) A licence application shall be in writing and in English. c) The original and two complete official copies shall be submitted to the Bank of Sierra Leone. d) The application must be signed by an authorized officer of the applicant.

4 e) Prior to making a determination on an application, the Bank of Sierra Leone may by notice in writing, require additional information. f) The application should be accompanied by copies of audited balance sheet for the last three years of the proposed Other Deposit-Taking institution, where applicable. 4.0 DESIGNATION OF SPOKESPERSON The licence application shall identify:- a) An English-speaking spokesperson that has been formally designated by the applicant to act on its behalf regarding the application. b) The spokesperson’s name, address and telephone number shall be provided in the application. c) During the time that the licence application is pending with the BSL, any change to the name, address or telephone number of the spokesperson should be promptly provided in writing to the BSL. d) All communications between the BSL and the applicant will be directed to the spokesperson. 5.0 INFORMATION ON OTHER TAKING DEPOSIT INSTITUTION The following information on the Other Deposit-Taking Institution should be submitted as part of the application:- a) Minutes of the meeting of the Board of Directors of the applicant authorizing the application for licence. b) The proposed name of the Other Deposit-Taking Institution. c) A copy of the Memorandum and Articles of Association of the Other Deposit-Taking Institution. d) A copy of the certificate of registration as a company of the Other Deposit-Taking Institution. e) The capital structure of the Institution as of the date of the application, and the amount of the proposed paid-up capital of the Institution, including the amount that may have previously been paid in or subscribed to; provided that no capital in kind shall exceed 20% of the proposed paid-up capital. f) Identify the type and number of shares.

5 6.0 DIRECTORS AND SENIOR MANAGEMENT a) The maximum number of Directors on the Boards of Other Deposit￾Taking Institutions shall be seven (7) and the minimum shall be three (3), of which the majority shall be resident in Sierra Leone including the chairman. b) Every Director and member of the Management team must go through the “fit and proper” persons test in accordance with Section 6 (2) of the Other Financial Services Act 2001 and schedule to the Act before taking employment with the institution. c) Non-executive directors shall not remain on the Board of an Other Deposit-Taking Institution continuously for more than a period of two terms of three (3) years each. d) The Chief Executive Officer of the Other Deposit-Taking institution shall not serve in that capacity for more than ten years. e) It shall be the responsibility of the Board of Directors to communicate to the Bank of Sierra Leone the resignation and/or removal of any of its members within five (5) working days and giving reasons thereof. f) No member of the Management team shall take up office unless:- (i) He has been cleared as a “fit and proper” person by the Bank of Sierra Leone. (ii) The institution must have submit to the Bank of Sierra Leone copies of the Curriculum Vitae together with all relevant certificates of academic and professional qualifications of the proposed Management staff for the “Fit and Proper” test. 7.0 INFORMATION ON CONTROLLING PERSONS 7.1 Shareholders Etc. For each person who is, or proposes to be, a shareholder, promoter, or sponsor of the Other Deposit-Taking Institution, the following information shall be submitted as part of the application: - a) Name b) Address c) Physical persons; National Identification Cards or passport details and relevant data.

6 d) Legal persons; identification of persons owning ten percent (10%) or more, or who are otherwise in control. e) Number and type of shares held or to be subscribed in the proposed Other Deposit-Taking Institution, price per share, total price, resulting percentage ownership; 7.2 Board of Directors etc For each person who proposes to be a member of the Board of Directors, the audit committee, or senior management of the proposed licensed institution, the following information shall be submitted as part of the application: - a) Name b) Address c) National Identification Cards or passport details and relevant data. d) Education, qualifications, and professional or managerial experience, included in a detailed curriculum vitae; 8.0 BUSINESS PLAN The business plan for the Other Deposit-Taking Institution shall consist of three parts: - a) Report on market survey of the banking and financial sectors, or feasibility study; b) Detailed financial projections for the initial five years. c) Narrative in which the subjects listed below are fully discussed; and

8.1 INTRODUCTION State the objectives of the business. Provide a basic statement on the nature and scale of the Other Deposit-Taking Institution, development plans for the business, and arrangements for the management of the business. 8.2 ASSUMPTIONS Discuss all assumptions used in the preparation of the business plan and financial projections such as economic conditions in Sierra Leone, level of competition, growth forecasts, interest rates on earning assets (such as loans and investments) and liabilities (deposits, borrowed funds).

7 8.3 ORGANIZATIONAL STRUCTURE The Other Deposit-Taking Institution shall describe the structure of the organization and management of the Institution. 8.4 FINANCIAL ACTIVITIES The Other Deposit-Taking Institution shall:- a) Outline the types and scale of deposit-taking and other financial activities envisaged. b) The outline in Sec 8.4 (a) shall be supported by information of activities in terms of management, expertise, systems support, organization and staff. Specifically addressing:- (i) The types of loans to be offered targeted economic sectors, and plans for diversification; (ii) planned deposit and borrowing activity; (iii) Method for pricing loans and deposits. 8.5 RISK MANAGEMENT The Other Deposit-Taking Institution shall:- a) Describe the risk management processes namely; risk identification, measurement, monitoring and control. b) Describe plans for controlling the following:- (i) Liquidity, interest rate, and maturity risks (asset and liability management); (ii) credit risk (iii) Operational risk (iv) Market risk; and (v) All other risks to which the Institution will be exposed when engaged in the financial activities envisaged by the business plan. 8.5.1 With regard to credit risk, the Institution shall address:- (a) Credit policies (which must include limitations on loans to affiliates and controlling persons) (b) Plans to minimize concentration risk through diversification and limitations on exposures to individual and groups of related borrowers, and

8 (c) Asset quality considerations such as underwriting, loan classification system, and provisioning for bad and doubtful loans. 8.6 INFRASTRUCTURE The Other Deposit-Taking Institution shall:- a) Provide information on the suitability of the premises. b) Indicate whether facilities and equipment will be leased or purchased. c) Address plans for future expansion, including branch offices. d) Describe the operations systems, including corporate policies and procedures, accounting standards, record-keeping, reporting (including to the management, board of directors, shareholders and the Bank of Sierra Leone) e) Provide evidence of computerization (including hardware, software, and maintenance) f) Provide for internal audit and controls. g) Provide evidence that systems are capable of producing all required reports to the BSL in an accurate and timely fashion. 8.7 BUSINESS PLAN MONITORING The Other Deposit-Taking Institution shall discuss the methods that the board of directors will use to regularly monitor performance under the business plan. 8.8 OWNERSHIP STRUCTURE a) There must be clear ownership structure. b) Prior approval of the Bank of Sierra Leone must be obtained before an individual can acquire more than 10% of the shares of an Other Deposit￾Taking Institution. c) The Bank of Sierra Leone must be given prior notification before an individual can obtained more than 5% of the shares of an Other Deposit￾Taking Institution.

9 9.0 FINANCIAL OBLIGATIONS 9.1 The financial obligations are as follows: - Le (a) Minimum paid-up share capital 1 billion (b) Non-refundable application fee 100,000 (c) Non-refundable licensing fee 1 million (d) Change of name fee 500,000 (e) Opening of branch/agency/booth 500,000 The above-mentioned amounts may be varied by the Bank of Sierra Leone from time to time. 10.0 EXTERNAL AUDITORS External Auditors appointed by any Deposit-Taking Institution shall be acceptable to the Bank of Sierra Leone. 11.0 SOURCES OF FUNDS The Central Bank shall verify sources of funds of every Other Deposit-Taking Institution. 12.0 PRUDENTIAL REQUIREMENTS 12.1 Every Other Deposit-Taking Institution shall comply with the following requirements: - (a) Liquidity (i) Must maintain at all times, minimum liquid assets which shall not be less than 20% of total deposit liabilities of which 10% shall be cash reserves. (ii) Liquid assets means (a) notes and coins which are legal tender in Sierra Leone; (b) balance in current account with the Bank of Sierra Leone; (c) Government securities maturing within ninety-one days; (d) such other assets as may be specified by the Bank of Sierra Leone.

10 (iii) Cash reserves shall be maintained by way of cash holding in vaults and tills of each Institution and/or by way of balance held with the Bank of Sierra Leone. (iv) Any licensed Other Deposit-Taking Institution which fails to comply with the liquidity requirements shall pay to the Bank of Sierra Leone a penalty equal to the highest lending rate of that institution plus one (1) percent of the deficient amount. (b) Minimum Paid-Up Capital (i) Every Institution incorporated or registered in Sierra Leone must at all times maintain in Sierra Leone an unimpaired minimum paid-up capital of Le1,000,000,000. (c) Capital Adequacy (i) The minimum Capital Adequacy ratio for each Other Deposit￾Taking Institution shall be 8%. (ii) The Capital Adequacy shall be measured as a percentage of the capital base of the Other Deposit-Taking Institution to its risk weighted assets in accordance with Annex I. (d) Maintenance of Reserve Fund (i) Institutions must maintain a reserve fund. (ii) Transfer into the reserve fund shall be made from its net profits for each year before it declares any dividend and after it has made provision for any taxes, as follows: a. where the amount of the institution’s reserve fund is less than 50 percent of its paid-up capital, an amount which shall not be less than 50 percent of the institution’s net profit for the year; b. where the amount of the institution’s reserve fund is 50 percent or more, but less than 100 percent of its paid-up capital, an amount which shall not be less than 25 percent of the institution’s net profit for the year; c. where the amount of the institution’s reserve fund is 100 percent, an amount which shall not be less than 10 percent of the institution’s net profit for the year;

11 (e) Payment of Dividend (i) No Other Deposit-Taking Institution shall declare or pay any dividend on its shares in any year until: - a. It has completely recovered all of its capitalized expenditure and accumulated or un-provided for losses. b. Capital Adequacy ratio has been met. (ii) For this purpose, capitalized expenditure includes preliminary expenses and share-selling commissions incurred by the Other Deposit-Taking Institution and any other items of expenditure not represented by tangible assets. (iii) Where a licensed Institution fails to comply with the requirements for payment of dividend prescribed above, the institution and every director of that institution shall pay to the Bank of Sierra Leone a penalty of Le3, 000,000 (three million Leones) and Le1, 000,000 (one million Leones) respectively. (f) Concentration of Risk Limits (i) Other Deposit-Taking Institution shall not extend or grant loan to a single borrower in excess of 0.5% of the institution’s capital base and to a group of borrowers in excess of 1% of the institution’s capital base. (ii) In transactions between licenced institutions the loan to any single institution or group of licenced institutions shall not exceed 20 % of the net worth of the institution undertaking such exposure or 20% of the net worth of the institution to which such facilities are extended or which of the two is lesser. (iii) Any licensed Other Deposit-Taking Institution which fails to comply with the requirements shall pay to the Bank of Sierra Leone, a penalty of Le1,000,000 (one million Leones); and thereafter submit a plan to the Bank of Sierra Leone on how the situation could be remedied.

12 (g) Limits on Connected/Insider Business No Other Deposit-Taking Institution shall grant: - (i). Unsecured advances to any of its directors or their close relations whether such advances are obtained by its directors or their close relations jointly or severally; (ii). Any advances in excess of 2% of the institution’s capital base to any firm or company or group of firms or companies in which any of that institution’s directors or other officials is interested as a partner or guarantor or is one of the principal shareholders; (iii) In the case of any unsecured loan or credit facility any amount which in the aggregate exceeds two thirds of one percent of the institution’s capital base; or (iv). To its officials, employees or their close relations unsecured advances or unsecured credit facilities which in the aggregate for any one official, employee or close relation exceed two years emoluments of such official or employee. (iv) Any loan, advances or credit facility to its holding company, subsidiary or affiliate unless such loan, advance or credit facility:-  Is fully secured;  Is subject to loan criteria or terms and conditions not more favourable than those ordinarily applicable for granting such facilities to the public; or  Has been approved by the Board of Directors of the institution or a committee of the Board of Directors. (h) Deposits An Other Deposit-Taking Institution shall accept savings, time and demand deposits only. (i) Provision for Classified Assets Each Other Deposit-Taking Institution shall review at least once every thirty days, its loans and advances and other investments and make

13 appropriate provisions for loan losses or assets deterioration as specified below: - Days at Risk Description Provisioning Requirement 15 – below 60 Substandard 20% 60 – to below 90 Doubtful 50% 90 and above Loss 100% Reschedule loans 15 – below 60 Substandard 40% 60 – to below 90 Doubtful 75% 90 and above Loss 100% For this purpose days at risk means day credit is overdue. (j) Limit of Investment in Fixed Asset Every licensed Other Deposit-Taking Institution shall not invest more than 30% of its Capital Base on fixed assets. 13.0 REPORTING REQUIRMENTS Every Other Deposit-Taking Institution shall submit the returns below to the following address:- The Director Banking Supervision Department 6 th Floor, Sam Bangura Building Bank of Sierra Leone Gloucester Street Freetown a) Weekly Returns Form 1: Weekly Statements of liquidity as specified in Schedule 1. The Weekly Return shall be submitted not later than the Wednesday following the week of reporting. b) Monthly Returns FORM 2: Monthly Statements of Assets and Liabilities specified. FORM 3: Monthly Computation of Capital Adequacy specified.

14 FORM 4: Monthly Statements of Income and Expense specified FORM 5: Monthly Schedule of Loans extended to Insider specified. FORM 6: Monthly Schedule of provisions for adversely classified debts as specified. FORM 7: Monthly Schedule of Portfolio Quality as specified. FORM 8: Violation of Credit to a Single Borrower or Group of Borrowers. (i) All monthly returns shall be submitted not later than twenty days after the month of reporting. (ii) Any Other Deposit-Taking Institution, which fails to meet this requirement, shall pay Le50, 000 for each day the return is not submitted. (iii) Any return returned to the institution for amendments, corrections will be treated as return not submitted and the sum of Le50, 000 per day will be applied. 13.1 Preparation, Submission and Publication of Balance Sheet Not later than four months after the end of each calendar year, every Other Deposit-Taking Institution shall: - (a) Prepare a balance sheet as at last working day of the year and the profit and loss account for the year in line with international accounting standards; (b) The documents shall be signed by the Chief Executive Officer and one board member; (c) The balance sheet and profit and loss account shall be audited in line with international standards on auditing.

15 13.2 Not later than four months after the end of the calendar year every Other Deposit-Taking Institution shall: - (i) Submit a copy of its audited balance sheet and profit and loss to the Bank of Sierra Leone. (ii) Display conspicuously throughout the year in its place of business its latest audited balance sheet with the full names of the board directors. (iii) Publish a copy of the audited balance sheet in at least one newspaper of general circulation in Sierra Leone. (iv) Any Institution, which fails to comply with any of the above requirements, shall pay a penalty of Le3,000,000 (three million Leones). 14.0 DISPLAY OF LICENCE AND INTEREST RATES 14.1 Every Other Deposit-Taking Institution shall display in a prominent position in its Head Office and branches: - a) A copy of its current licence. b) Its rates of interest. 15.0 OTHER REQUIREMENTS 15.1 All changes in the Senior Management and Board of Directors of Other Deposit-Taking Institutions shall be communicated to the Bank of Sierra Leone. 15.2 An Other Deposit-Taking Institution shall promptly notify the Bank of Sierra Leone of any changes in its shareholdings structure. 15.3 An Other Deposit-Taking Institution shall submit to the Bank of Sierra Leone the specimen signatures of staff assigned the function of signing all returns submitted to the Bank of Sierra Leone. 15.4 An Other Deposit-Taking Institution shall notify the Bank of Sierra Leone when it intends to open a branch or an agency. 15.5 Clearing of Cheques shall be done through agencies(institutions, that are members of the Clearing House). 16.0 PROHIBITIONS 16.1 No Other Deposit-Taking Institution shall: -

16 (a) Deal in foreign currency except when receiving grant funds and borrowing or repaying in foreign currency. (b) Give any credit facility or enter into any other transaction against the security of its own shares. (c) Pay any dividend on its shares without Bank of Sierra Leone’s prior approval in writing. (d) Engage in business other than those for which it was licensed. (e) Assign either in whole or in part the debts owed to it by its shareholders/officers or waive interest thereon without the prior approval of the Bank of Sierra Leone in writing. 17.0. GENERAL 17.1 Amendments a. The Bank of Sierra Leone may amend these Guidelines from time to time as and when deemed appropriate. b. Existing Other Taking Deposit Institutions shall be given a transition period of 6 months by Notice to comply with this regulation. c. Such notice shall be given in writing by the Bank of Sierra Leone. d. Time begins to run from the date on the notice. 17.2 Repeal The guidelines for Microfinance Deposit-Taking Institutions are hereby repealed and replaced.

17 ODTI FORM 1 WEEKLY STATEMENT OF LIQUIDITY FOR OTHER DEPOSIT-TAKING INSTITUTIONS NAME OF OTHER DEPOSIT-TAKING INSTITUTION…………………………………………………………………………………………… WEEKLY STATEMENT OF LIQUIDITY AS AT…………………………………………………………..…… (In thousands of Leones) Amount (‘000’s) Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total week Average for Week

1. Cash in till and vault
2. Current account with Bank of Sierra Leone…………………………………………………………………………………………….
3. Sub Total…………………………………………………………………………………………
4. Government of Sierra Leone Treasury Bills ………………………………………………………..
5. Other Sierra Leone Government marketable securities maturing within 91days …………………………………………………………………….
6. Total Liquid assets held……………………………………………………………………………………….

18 DEPOSIT LIABILITIES Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total week Average for Week 7. Savings Liabilities 8. Time deposits 9. Total Deposit Liabilities 10. Interest Rate on deposits a) Savings …. b) Time: 3 months …. 6 months …. 9 months …. 12 months …. 11. Lowest and Highest Lending Rates on: a) Loans Lowest … Highest…. LIQUIDITY RATIO REQUIREMENTS 12. Minimum Cash Ratio (10% Deposits Liabilities) ………………… 13. Actual Cash Ratio (3/9) ………………………………………. 14. Surplus/(Short) ………………………………………………….. 15. Minimum Liquidity Ratio (20% Deposit Liabilities) ……………. 16. Actual Liquidity Ratio (6/9) ………………………………….. 17. Surplus/ (Short) …………………………………………………. 18. Total advances……………………………………………. Signature …………………………………………………………………… Date …………………………………………………………………………..

19 ODTI FORM 2 BANK OF SIERRA LEONE MONTHLY STATEMENT OF ASSETS AND LIABILITIES FOR OTHER DEPOSIT-TAKING INSTITUTIONS IN SIERRA LEONE NAME OF OTHER DEPOSIT-TAKING INSTITUTION ……………………………………………………….. MONTH ENDING…………………………………………………………………………….. Number of branches:……………………………………………………………………. Number of agencies:………………………………………………………………………

20 ODTI FORM 2 MONTHLY STATEMENT OF ASSETS AND LIABILITIES NAME OF OTHER DEPOSIT-TAKING INSTITUTION………………………………………………………………………………….. MONTH ENDING……………………………………………………………………………………………………….. ASSETS Le’000’ 1 Notes and coins 2. Balance with financial institutions in Sierra Leone 3. Investment in Securities (Line items (a)+(b)+(c) a. Treasury Bills b. Government Bonds (specify) c. Others, Specify 4. Loans (Line items (a)+(b)+(c) a. Current b. Past Due c. Restructured 5. Allowance for loan loses: Specific 6. Net loans outstanding (Line item (4) –(5) 7. Inter Branch/Due from own offices 8. Fixed assets (Gross)(Add Line items a + b+ c) a.) Land b) Buildings c). Equipment 9. Accumulated depreciation 10. Net Fixed Assets Lines(8)- (9) 11. Long term investment 12. Other assets 13. TOTAL ASSETS

21 14.LIABILITIES 15.Deposits Line (a) + (b) a. Savings b. Time deposits 16. Accrued interest 17. Borrowing-short term (Market rate) 19. Other liabilities (specify) 20. Borrowings-Long term debt (concessional rate) 21. Borrowings-Long term debt (Market rate) 22. Grants/Deferred income 23. Inter Branch 24. Other long-term liabilities (specify) 25. Total liabilities (Add items 15 – 24) 26. EQUITY 27. Paid up Capital 28. Share Premium 29. Retained Earnings prior years 30. Current year Net Profit/loss 31. Other Reserves (specify) 32. Total equity (Add item 27 - 31 ) 33. Subordinated debt 34. TOTAL LIABILITIES AND EQUITY Date………………………………. Date…………………………. Title……………………………… Title…………………………. Signature……………………… Signature………………….

22 ODTI FORM 3 MONTHLY COMPUTATION OF CAPITAL ADEQUACY (To be submitted as at same reporting date) NAME OF OTHER DEPOSIT-TAKING INSTITUTION ………………………………………………………………………… MONTH ENDING…………………………………………… 1.0 CORE CAPITAL (Tier 1) Le 1.1 +Paid-up share capital ………………………….. 1.2 +Share premium …………………… 1.3 +Retained earnings ……………………….. 1.4 +Net profit after-tax …………………………. 1.5 +Current year-to-date ……………………. (50% only)/(Loss 100%) 1.6 (-) Less, investment in financial Companies, not consolidated ………………… 1.7 (-)Less, accumulated losses ……………….. 1.8 Core Capital ---------------------(A) 2.0 SUPPLEMENTARY CAPITAL (Tier 2) 2.1 General provision ……………….. (Limited to a maximum of 1.25 of gross Risk-Weighted assets). 2.2 Subordinating debt (Not to exceed 50 % of core capital …………… 2.3 Other Reserves ……………. 2.4 Total supplementary Capital … ……….. (B) (Not to exceed 100% of tier 1 capital) 3.0 TOTAL CAPITAL (Core +supplementary)……. (C ) 4.0 CAPITAL RE QIUREMENT BASIS 4.1 Risk weighted sum of items (Annex 1)……………….(D) 4.2 Core Capital required: 7.5% of (D)…………………….(E) 4.3 Total capital Required: 15% of (D)……………………(F) 5.0 CAPITAL REQUIREMENT CALCULATIONS: Minimum Capital Requirement 5.1 Paid up share capital (Line 1.1 under core capital)………. Core Capital requirement 5.2 Minimum ratio of 7.5 %= (Line 1.7/Risk weighted assets)………………………% 5.3 Surplus or (deficiency) of core capital………………… Total capital requirement 5.4 Minimum ratio of 15%= (Line 3.0/ Risk weighted assets)………………………% 5.5 Surplus or (deficiency) of Total capital…………………

23 ANNEX I CAPITAL REQUIREMENT: RISK-WEIGHTED ASSETS Assets * Amount (Le’000) Risk Weighting Weighted Asset On Balance Sheet 1 Notes and Coins ………. 0% Nil 2 Balances with banks in S/L ………. 0% …………... 3 Balances with banks outside S/L ………. 0% …………... 4 Balances with OFIs in S/L ………. 0% …………... 5 Balances with OFIs outside S/L ………. 0% …………... 6 Investment in Govt. securities ………. 0% …………... 7 Loans secured by cash ………. 0% …………... 7a Loansnet of provision ………. 100% ………….. 8 Long term investments ………. 100% …………... 9 Premises and other fixed assets ………. 100% …………... Inter 10 Due from own office ………. 100% …………... 11 Other Assets ………. 100% …………... 12 Total on Balance Sheet Assets/ Total Risk Weighted Assets ………. …………... …………... Note: Total in Item 12 must equal to the amount of total assets of on balance sheet.

24 ODTI FORM 4 BANK OF SIERRA LEONE MONTHLY STATEMENT OF INCOME AND EXPENSE NAME OF OTHER DEPOSIT-TAKING INSTITUTION..………………………………………… MONTH ENDING…………………………………………………………………. Le’000’ Current month Financial year to-date 1 Credit income (Lines a + b + c + d) a Interest income from loans b Loan fees c Services charges d Late fees on loans 2 Total other income a Income from investment b Income from other financial services 3 Gross Financial income. Add Line (1) + (2) 4 Financial Expenses of lending funds (Line a + b + c ) a Interest and fees expense on debt (borrowing) b Interest expense on deposit c Provision for bad debts 5 Net financial income (Line 3 – 4) 6 Operating Expenses financial services (Line a+b+c+d+e+f) a Salaries and benefits b Administrative expenses c Rent and utilities d Travel and Transport e Depreciation f Other operating expenses 7 Net income (Loss) from operating (Line 5 - 6)

25 Le’000” Current month Financial year to-date 8 Income for financial services (Line a + b + c + d) a Grant income for the Loan fund b Grant income for fixed assets c Grant income for operations d Unrestricted grant income 9 Grant income for non- financial services (Item a + b + c) a Grant income for fixed assets b Grant income for operations c Unrestricted grant income 10 Income from non-financial services 11 Operating expenses from non-financial services Item (a+b+c+d+e+f) a Salaries and benefits b Administrative expenses c Rent and utilities d Travel and Transport e Depreciation f Other 12 Net operating profit/Loss from Non financial services (Line item10 - 11). 13 Net profit/Loss for the period (line items 7 + 8 + 9 + 12) 14 Corporation tax 15 Net profit (Loss) after tax (13 - 14) 16 Dividends 17 Retained Earnings Signature: ……………………………………………………………… Date: …………………………………………………………………….

26 BANK OF SIERRA LEONE ODTI FORM 5 MONTHLY SCHEDULE FOR LOANS EXTENDED TO INSIDERS NAME OF OTHER DEPOSIT-TAKING INSTITUTION.. ……………………………………………… MONTH ENDING ………………………………………….. Name Amount (Le’000) % of net worth Total Signature: ……………………………………………………………… Date: ……………………………………………………………………

27 BANK OF SIERRA LEONE ODTI FORM 6 MONTHLY SCHEDULE OF PROVISIONS FOR ADVERSELY CLASSIFIED DEBTS NAME OF OTHER DEPOSIT-TAKING INSTITUTION..………………………………………………… MONTH ENDING …………………………………………….. PART 1: SPECIFIC PROVISIONS Prior Year-to-date Current month Opening balance Transfer to provisions Gross charge-off (loan losses) Recoveries on prior charge-offs Other entries (describe) Total PART II: CHARGE OFFS AND RECOVERIES BY SECTOR Year-to- date for the current financial year (Le’000’s) Sector Charge-off Recoveries

1. Agriculture
2. Manufacturing
3. Trade & Commerce
4. Transport & utilities
5. Building & construction
6. Others
7. Total PART III: INTEREST IN SUSPENSE Prior Year-to-date Current month Balance

28 PART IV: SUPPLEMENTARY DATA ON NON-PERFORMING ADVANCES (Le’000) Sector Total outstanding Non-performing Amount

1. Agriculture
2. Manufacturing
3. Trade & Commerce
4. Transport & utilities
5. Building & construction
6. Others
7. Total N.B Total must agree with item no.4 (Loans in Form 2) Date: …………………………………………………………. Signature: ……………………………………………………

29 BANK OF SIERRA LEONE 1 of 2 ODTI FORM 7 MONTHLY REPORT OF PORTFOLIO QUALITY RETURNS (PQR) NAME OF OTHER DEPOSIT-TAKING INSTITUTION ………………………………………………………………………………………… MONTH ENDING …………………………………………….. A CLIENT POPULATION Current month Previous month 1 Number of new borrowers 2 Number of borrowers existing 3 Total number of borrowers B NO. OF DEPOSITORS 4 Savings 5 Time Total C PORTFOLIO STATUS 6 No. of loans disbursed 7 Value of loans disbursed (Le’000) 8 No. of loans outstanding 9 Value of outstanding loan portfolio (Le’000) 10 Average Loan amount 11 Average loan term (in weeks)

2 of 2 12 LOANS No. of loans in arrears Outstanding balance Minimum provision (%) Provision amount (Le’000) Compulsory savings/LIF Required Provision Portfolio at risk ” 30 days to below 60 days 20% ” 60 days to below 90 days 50% ” 90 days and above 100% Reschedule loans ” 15 days to below 30 days 15% ” 30 days to below 60 days 40% ” 60 days to below 90 days 75% ” 90 days and above 100% Total 13 Amount of loans written off (Le’000) this month 14 Loans recovered this month 15 Loan insurance fund received this month

ODTI FORM 8 VIOLATION OF CREDIT TO A SINGLE BORROWER OR GROUP OF BORROWERS NAME OF OTHER DEPOSIT-TAKING INSTITUTION …………………………………………………………………………………………………….. MONTH ENDING …………………………………………….. Amount (Le’000) Largest individual loans (exceeding 0.5% of net worth) Percentage of net worth Largest institution loans (exceeding 20% of net worth) Percentage of net worth Largest group loans (exceeding 1% of net worth) Percentage of net worth Totals Signature: ……………………………………………. Title:…………………………………………………. Date: …………………………………………………..