Prime News Ghana

First National Bank to take over GHL Bank

By Mutala Yakubu
First National Bank
First National Bank to take over GHL Bank
facebook sharing button Share
twitter sharing button Tweet
email sharing button Email
sharethis sharing button Share

First National Bank Ghana has received a 'no objection' notice from the Bank of Ghana to initiate engagements with GHL Bank for a possible takeover.

PrimeNewsGhana checks indicate that this move forms part of interventions being made to avoid GHL Bank lose its license and it is being influenced by some difficulties GHL Bank is facing in meeting Bank of Ghana's (BoG) GHC 400,000,00 minimum capital requirement by the end of this month.

This development came about because GHL Bank's major shareholder, a Private Equity firm based in Dubai has indicated its inability to contribute to the bank's recapitalization drive to meet in the new minimum capital requirement for universal banking.

PrimeNewsGhana sources at the Bank of Ghana say even though the take over looks imminent, the two banks are in the process of securing the necessary approval from the regulators in Ghana and South Africa to proceed with the transaction.

The approval from these regulators could fast-track the process for First National Bank to initiate the requisite due diligence processes to evaluate the assets and liabilities of GHL Bank and conclude the takeover.

This move will also be in the positive direction for First National Bank to expand its banking operations in Ghana.

Meanwhile, the Head of Marketing and Corporate Affairs of First National Bank, Mr Delali Dzidzienyo in an interview with PrimeNewsGhana said; "We wish to state that discussions with GHL Bank are at a very early stage and it would therefore not be appropriate to comment or provide any specifics at this moment". 

He further stated that, "As of December 12, 2018, First National Bank had met the new minimum capital requirement of Four Hundred Million Cedis (GHS 400,000,000) and we are well positioned to continue to offer  banking services regardless of the outcome of any discussion we have with any potential or would be partners".

Read also: First National Bank to meet BoG's GH¢400 million minimum capital requirement

Ghana News: Latest news in Ghana