Three banks in Ghana will in the coming months be merging to one major bank pending the approval from the Bank of Ghana.
These banks, Premium Bank, Sahel Sahara Bank and GN Bank will all be coming together as one major bank very soon. 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.
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.