News:
August 17, 2017
A member of the Finance Committee of Parliament and Member of Parliament for the Ho Central constituency in the Volta region, Benjamin Komla Kpodo has indicated that it is about time smaller Banks in the country considered the possibility of merging in order to increase their solvency and operational efficiency.
His call comes in the wake of the GCB Bank`s takeover of UT and Capital Banks as announced by the Bank of Ghana (BoG).
According to the experience Parliamentarian, his call is also in line with the BoG capital requirements for Banks.
The BoG requirement he said will also result in mergers, and acquisitions by bigger Banks.
He urged smaller Banks to restructure to enable them gather enough resources to meet new regulations.
The Ho Central lawmaker also decries individualism in the Banking sector whiles advocating sole proprietorship smaller Banks to open themselves up for partnership.
He noted that GCB Bank made a profit in excess of Ghc300 million in 2016 and now that it is absorbing liabilities from UT and Capital Banks, its profits will be affected.
Mr Kpodo has therefore charged management of GCB Bank to institute strategic measures to ensure it remains afloat.
By Christian Kpesese/ ghanamps.com