Two banks in Ghana, Omibank and Sahel Sahara Bank, have entered an agreed to merge into one major bank by the end of December 2018.
This move has been contained in a press statement by both banks. The two financial institutions secured a no objection to the process in a letter dated August 14, 2018, from the Bank of Ghana (BoG) on their planned merger.
The hidden reasons for this merger is not known but the press statement pointed out some five reasons including the fact that both banks could not meet the minimum capital requirement of 400 million cedis which could have seen them collapse come December 31.
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The decision for the merger follows the banking crisis which has seen five banks collapse with the rippling effects being massive job losses across all divides.
Earlier, YEN.com.gh reported on how some three banks could merge to one major bank pending the approval from the Bank of Ghana.
The merger talks were initiated by GN Bank and are expected to be one in a series of other mergers in the banking sector.
Reports do say the regulator will soon be making an announcement over this issue in the coming days.
The Bank of Ghana could at the Monetary Policy Meeting on Monday give details of commercial banks that have submitted proposals to merge.
This deal was closed by finance house Gold Cost and is to help them meet the new capital requirement of GH¢400 million by December this year.
Ghana’s banking system has gone through various transformations since the late 1980s and that includes the adoption and implementation of the financial sector adjustment programme.
The privatization of some of the state-owned banks and the liberalization of the financial sector have led to the entry of a number of domestic and foreign banks into the industry.
Currently, there are over 30 banks operating in the country with more on the waiting list to acquire their universal licenses to begin operations.
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Though the liberalization of the financial sector has brought in some level of competition; it has equally brought in its own challenges as the sector has not responded to the level of efficiency that is required.
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