The Bank of Ghana (BoG) has given the green light to First Atlantic Bank and Energy Commercial Bank to proceed with merger talks.
Inside sources told 3news.com that the Central Bank had “no objection” to the planned merger between the two banks and has communicated to them accordingly.
The BoG had announced the new minimum paid-up capital requirement to be GH¢400 million, as part of a holistic financial sector reform plan to further develop, strengthen, and modernize the sector to support the government’s economic vision and transformational agenda.
Though some banks have been able to meet the requirement, several others including First Atlantic Bank and Energy Commercial Bank are yet to do so, and it is quite unclear what will become of the banks that may not be able to meet the December 31 deadline.
But if this merger goes on successfully, then the two banks will be out of the question.
It is, however, not clear for now how this “no objection” communication by the BoG would help the two banks to fast-track the process.
The two banks are attempting to consolidate after Energy Commercial Bank failed to raise the targeted amount of ¢340 million to help meet the new minimum capital requirement.
Consequently, they signed a Memorandum of Understanding to merge their business to help them meet the new capital levels.