Total gross loans of Liberia's banks fell 4.2% to 96.18bn LRD (€507mn) at end-July 2026 from 100.36bn LRD (€529mn) at end-June, mainly because lending to the oil and gas and other sectors declined, the Central Bank of Liberia (CBL) said in its July economic review. The non-performing loan ratio fell to 12.27% from 14.16%, still above the 10% regulatory threshold.
Analysis: Loans measured in Liberian dollars were 16% lower than a year earlier, by our calculation, but exchange-rate movements affect this comparison because most lending is denominated in U.S. dollars. Private-sector dollar loans fell 7.7% in dollar terms. Non-performing loans declined 17% during July to 11.79bn LRD (€62.2mn), reducing the bad-loan ratio. Bank capital adequacy stood at 39.64%, suggesting that limited capital is not the only possible constraint on lending. The central bank's October statement put bad loans higher, at 13.38%, so its August review may help clarify the trend.
Source: Central Bank of Liberia, Research, Policy & Planning Dept, CBL Monthly Economic Review, July 2026 (Vol. 12 No. 7), July 2026 and June 2026 and July 2025; Central Bank of Liberia, Research, Policy & Planning Dept, CBL Monthly Economic Review, July 2026, July 2026; Central Bank of Liberia (CBL), CBL Monetary Policy Committee Communique No. 28 (meeting of October 6, 2026), Q3 2026 (latest reported by the MPC); Central Bank of Liberia, CBL daily market buying and selling rates, 27 October 2026