Group Endorses Energy Bank, First Atlantic Bank Merger Talks

A group calling itself the Financial Literate Generation (FLG), has described moves by Energy Bank and First Atlantic Bank to merge as positive and innovative.

The FLG in a statement signed by the Head of Financial Situation Room, Nana Yaw Kumi Asafo, commended the two banks for working to come together to raise the 400 million cedis minimum capital requirement for banks.

“The Financial Literate Generation (FLG) give them our overwhelmingly support…” the statement indicated, describing the merger talks as a “fair deal that would benefit all stakeholders of the banks, especially those who envisaged better returns when the approval comes from the regulatory body [Bank of Ghana].

Read: First Atlantic Bank acquires Energy Commercial Bank?

It is the belief of the FLG that the business combination would further “strengthen the two banks as a formidable financial institution with wider branch network and strong retail franchise.”

The statement added: “As a Group, we see the merger as something that will help the two banks become a major player in corporate banking and other services, which would strengthen its traditional strengths in structured and trade finance, cash management and treasury.”

Background

First Atlantic Bank has formally notified the Bank of Ghana over its planned “Merger” with Energy Commercial Bank.

JoyBusiness understands the required documents have been sent to the Central Bank for their "no objection" approval for the two parties to go ahead with the "marriage".

There are strong indications that the Bank of Ghana is likely to give its "no objection" to the deal, paving the way for the two institutions to finalize the “merger”. This would ensure that the “merged” entity would meet the new capital requirement ahead of the December 31 deadline.

Sources say new capital level for the “merge entity” would be more than 400 million cedis before the end of this year.

---Myjoyonline