Omnibank, Sahel Sahara Bank Merger Approved

The Bank of Ghana (BoG) has approved the merger between Omnibank and Sahel Sahara Bank (BSIC).

The consent was contained in a letter to the Managing Directors of the two banks from the Central Bank.

The two banks agreed to come together following the increase in the minimum capital requirement for commercial banks from GH¢120 million to GH¢400 million.

The request for approval has been with the Central Bank since August 3, 2018, according to the BoG’s letter.

The BoG, however, maintained that the approval is subject to some six conditions which should culminate in the regulator’s ultimate acceptance of the merger.

Per the conditions, the two banks are to complete capital verification exercise in respect of the fresh capital injection of GH¢13,800,000 by shareholders of Omnibank.

Also, the two entities are expected to submit a signed agreement between the Ghana Amalgamated Trust Limited (GAT) and the Pension Funds, confirming the availability of the GH¢120,000,000 for the proposed capitalization of OMNIBSIC Bank.

Again, the two banks are to submit resolutions by their respective boards and shareholders and the GAT confirming the capitalization.

Meanwhile, the Bank of Ghana is seeking a shareholders’ agreement between Omnibank, BSIC Bank and the Ghana Amalgamated Trust, which will state the new shareholding structure.

Furthermore, there is to be the submission of draft regulations of the combined entity to the Central Bank, and copies of the forms and other documents filed at the Registrar General’s Department in furtherance of the merger.

As at November last year, the Bank of Ghana Governor, Dr Ernest Addison, said 22 banks had met the requirement.

He indicated that out of the number, two are mergers.