The First National Bank Ghana has acquired 100 per cent stake in GHL Bank, a mortgage financing company in the country.
A statement announcing the transaction on May 5 in Accra said, the acquisition means that GHL Bank becomes a wholly-owned subsidiary of First National Bank Ghana.
It noted that First National Bank Ghana Limited is a subsidiary of the First Rand Group, an African financial institution group.
The transaction has been approved by the boards of the two banks while the Bank of Ghana and the South African Reserve Bank have given the required regulatory approvals.
Richard Hudson, Chief Executive Officer of First National Bank Ghana said plans were far advanced to merge the operations of the two banks.
“We believe that this merger will demonstrate and further cement our commitment to the Ghanaian market. We recognise that the economy is under a lot of pressure as a result of the COVID-19 pandemic but we remain excited about the future of banking in Ghana,” he stated.
Meanwhile, the customers of both banks have been advised to continue doing business with their current bankers without facing any disruption to their required service adding that any new developments would be duly announced.
The acquisition concludes a process which commenced in late 2018 in response to recapitalisation requirements insisted on by the Bank of Ghana requiring commercial banks to have at least GH¢400 million in tier one capital to retain their operating licenses in order to ensure that only financially solid banks are allowed to remain in business.
BY TIMES REPORTER
The post The First National Bank acquires 100% stake in GHL Bank appeared first on Ghanaian Times.
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