Sets out how the Association compiles and publishes banking industry indicators, including sources, reporting periods, aggregation, revisions and confidentiality, and defines each indicator from total assets and deposits to capital adequacy and digital banking users.
Purpose
This document explains how The Gambia Bankers' Association compiles and publishes statistics on the banking industry, and defines the indicators it uses. Its aim is to allow users to understand what each figure measures, where it comes from and how it should be interpreted. It contains no figures. Statistics are published separately, with reference to this methodology.
Sources
The Association draws on two kinds of source:
- Official sources: data published by the Central Bank of The Gambia, which licenses and supervises banks and is the authoritative source of prudential statistics, and by other public authorities.
- Industry returns: data submitted by member banks to the Secretariat through a standard template, used chiefly for indicators that are not otherwise published, such as information on service channels.
Every published figure states its source. Where official figures are available, the Association uses them in preference to its own aggregation. Where official and Association figures differ because of timing, coverage or definition, the difference is explained.
Reporting periods
Stock measures, such as assets and deposits, are compiled as at the end of a reporting period. Flow measures, such as profit, are compiled for the period. Each release states the reporting date or period. Ratios based on income, such as return on assets, are annualised where the period is shorter than a year, and the release says so.
Coverage and aggregation
Industry figures cover licensed banks that are members of the Association and have submitted returns for the period. The number of reporting institutions is stated in each release. Industry totals are the sum of individual bank figures. Industry ratios are calculated from industry totals, for example total non-performing loans divided by total gross loans, rather than as simple averages of individual bank ratios, so that each bank contributes in proportion to its size.
Confidentiality
The Association publishes only aggregated industry data. It does not publish figures for individual banks drawn from industry returns, nor aggregates that would allow the figures of an individual bank to be inferred. Data received from members are held securely and used only for statistical purposes.
Revisions
Figures may be revised when a bank corrects a return, when audited figures replace unaudited ones or when official sources revise their data. Revised figures are marked in the next release, with a short explanation. Significant methodological changes are announced in advance and, where practicable, earlier periods are restated so that series remain comparable.
Quality assurance
The Secretariat checks returns for completeness, internal consistency and consistency with previous periods, and queries significant movements with the reporting bank before publication.
Definitions
Balance sheet
Total assets. The sum of all assets on the balance sheets of reporting banks, as reported in their financial statements, net of impairment allowances.
Total deposits. Deposits held by reporting banks from customers, including current, savings and term deposits, in local and foreign currency. Deposits from other banks are excluded unless stated.
Loans and advances. Loans, overdrafts and other credit facilities extended to customers, shown gross of impairment allowances unless stated. Where a net figure is shown, it is identified as such.
Asset quality
Non-performing loan (NPL) ratio. Non-performing loans divided by gross loans and advances, expressed as a percentage. Loans are classified as non-performing in accordance with the Central Bank's prudential requirements on loan classification.
Capital and liquidity
Capital adequacy ratio. Regulatory capital divided by risk-weighted assets, expressed as a percentage, calculated in accordance with the Central Bank's prudential requirements and reflecting Basel capital concepts.
Liquidity ratio. Liquid assets divided by short-term liabilities, expressed as a percentage, with both terms defined in accordance with the Central Bank's prudential requirements.
Profitability
Return on assets (ROA). Profit after tax for the period divided by average total assets over the period, expressed as an annualised percentage.
Return on equity (ROE). Profit after tax for the period divided by average shareholders' equity over the period, expressed as an annualised percentage.
Access and channels
Branches. Permanent, staffed premises of reporting banks offering a range of banking services to customers, as at the end of the period. Agents, kiosks and offices not open to customers are excluded.
ATMs. Automated teller machines owned or operated by reporting banks and in service at the end of the period.
Digital banking users. Customers who have used a bank's mobile or internet banking service at least once within the activity window stated in the release. Registered but inactive users are reported separately where available. Because customers may hold accounts with more than one bank, industry totals may count the same individual more than once.
Interpreting the statistics
- Compare figures for the same reporting period and on the same definitions.
- Changes in the number of reporting banks affect industry totals.
- Foreign-currency balances are converted at the exchange rate on the reporting date, so exchange-rate movements affect reported totals.
- Ratios are industry-wide and do not describe any individual bank.
Citing the statistics
Users should cite both the Association's release and the original source and reporting period stated in it. Queries about methodology may be directed to the Secretariat.