MFI Report

MFI Background & Main Challenges: The Yoni Community Bank Ltd. (YCB) was established by the Bank of Sierra Leone (BSL) in December 2003 and registered as a limited liability company under The Companies Act (CAP 249). It is licensed by the Bank of Sierra Leone under The Other Financial Services Act 2001. On the 14th February 2003, YCB was opened to the public with its location at Freetown Road, Mile 91. YCB is the second community bank established in Sierra Leone and the first to be established in the Tonkolili District. It is expected to meet the diverse and changing financial needs of a broad range of clients in the Tonkolili District particularly the three chiefdoms of Yoni, Malal-Mara and Kholifa Mabang. YCB’s loan products are classified according to economic sectors namely agricultural loan, commercial loan, socio-economic or salary loan, cottage-industry loan, and community-link loan (loan for the purchase of bicycles, motorbikes and mobile phones). YCB also offers overdraft facilities for schools and commercial clients. YCB uses individual lending and solidarity group lending methodologies in the delivery of its loan products. YCB offers 3 savings products which are standard savings products offered in the banking industry namely savings account, current account and fixed deposits. The main challenges of the bank at present include mobilization of share capital from investors or additional liquidity to meet rapidly growing demand for loans, and automation of MIS or computerization of overall operations. Cacher