Somalia is not ready to welcome foreign banks, yet

[Deeq A.]

The Central Bank of Somalia (CBS) is tentatively considering granting licences to foreign banks to operate in Somalia. It is a process which, while invariably linked to politics, had been in the regulatory pipeline for many years. The government appears to be of the view that the market signalling of having a foreign bank operating in Somalia would show Somalia Plc is open for business. Others believe foreign banks will inject much needed challenger bank competition into the local market, driving up the standards of local banks and supporting overall growth in financial services. There is also the assumption that bringing in foreign banking expertise to the country will have wider positive spill-over effects across the financial services industry.

Source: Hiiraan Online