Sierra Leone’s Bank Governor Ibrahim Stevens announced the permanent closure of Union Trust Bank (UTB), confirming that its operations will be taken over by Rokel Commercial Bank, which is majority 51% state-owned, as part of a structured transition aimed at maintaining stability in the financial sector. 

Stevens assured customers that all deposits remain secure and fully protected, stressing that there will be no disruption to banking services as the transition is implemented. He further stated that the decision was made in strict compliance with banking regulations and legal frameworks, while also confirming that the jobs of UTB employees will be safeguarded under the new operational arrangement to ensure continuity and protect livelihoods.

Ibrahim Stevens  also added that the decision followed five years of intensified supervisory oversight, regulatory interventions, and recovery measures that ultimately failed to restore the bank's financial health. Speaking during a press briefing in Freetown, Stevens said the central bank acted under its legal mandate to preserve confidence in the country's financial system and protect depositors from escalating risks.

"The institution has not met the prudential standards required to continue operating as a licensed commercial bank despite sustained supervisory engagement," Stevens said, adding that the resolution was intended to safeguard financial stability rather than disrupt banking services.

Officials from the central bank said regulatory authorities had monitored Union Trust Bank through multiple corrective measures, including capital restoration efforts and enhanced supervision, before concluding that the lender could no longer operate safely within Sierra Leone's banking framework.

Outside several Union Trust Bank branches in Freetown, customers gathered seeking information about their accounts and the next steps following the announcement. Bank employees directed clients to official notices displayed at branch entrances, where security personnel managed orderly queues as customers awaited further guidance from regulators.

A senior Bank of Sierra Leone official, speaking to Diplomat News Network during the briefing, said authorities were implementing measures to minimize disruption to the financial sector and provide additional information to depositors as the resolution process advances.

Financial analyst Brima Conteh, an independent banking consultant based in Freetown, said the closure underscores the importance of strong regulatory oversight in maintaining public confidence. "The intervention demonstrates that supervisory authorities are prepared to act when a financial institution no longer meets prudential standards, even after extended recovery efforts," he said.

Union Trust Bank held a distinctive position in Sierra Leone's banking sector as the country's only privately owned indigenous commercial bank. Its closure marks a significant development for the national financial industry, where commercial banks operate under prudential regulations administered by the Bank of Sierra Leone.

The central bank said the intervention forms part of its broader responsibility to ensure the soundness of Sierra Leone's banking system, protect depositors, and maintain stability across the financial sector. Market participants and customers are expected to closely monitor subsequent announcements outlining the resolution process and arrangements affecting account holders and banking operations.