Three banks, GN Bank, Heritage Bank and Premium Bank have initiated merger talks and have consequently informed the Bank of Ghana (BoG) about their intent.
The deal forms part of moves to meet the Bank of Ghana’s (BoG’s) new minimum capital requirement of GH¢400 million by December this year.
A similar conversation was initiated between GN, Premium and Sahel Sahara but Sahel Sahara exited the merger deal into the waiting arms of Omni Bank, which specialises in servicing Small and Medium Enterprises (SMEs).
According to reports, GN Bank is spearheading the new move to bring Heritage bank on board and the transaction is being led by Gold Coast Fund Management, a subsidiary of Dr Paa Kwesi Nduom's Groupe Nduom.
Following the Bank of Ghana’s, no objection to the merger on August 14, 2018; the two banks have since signed a Memorandum of Understanding (MoU) to govern their intention to merge.
According to the two banks, the merger, when finally completed, will position the new entity as a major player in the banking industry to support private sector growth and Ghana’s development agenda.
Some of the key things that they have to meet before final approval from the central bank include; ensuring that only fit and proper persons shall own and manage the institutions as well as comply with all applicable regulatory requirements and other prudential norms of the Bank of Ghana.