Another Nigerian bank set to enter Ghana

Another Nigerian bank is set to enter the Ghanaian banking sector soon.

The bank, Access Bank received the license to operate from the Bank of Ghana in the country in November 2008, according to a report in the Business Daily, a Nigerian publication.

The Bank was licensed following the payment of the minimum capital requirement of US$100 million, the publication said.

Access Bank Plc is Nigeria’s fastest growing Bank with consistent triple growth in all key performance indicators over the past 6 years, the bank says on its website.

When ghanabusinessnews.com checked the bank’s website it found the following information. According to the information, the bank serves over 2 million customers through its 120 branches and business offices located in all major commercial centres and cities across Nigeria, and 6 other African countries namely: Cote D’Ivoire, Democratic Republic of Congo, Rwanda, Sierra Leone, The Gambia and Zambia.

The information also says Access Bank is currently ranked the 6th largest bank in Nigeria with shareholder’s funds in excess of $1.4billion (N166billion), Assets and Contingents in excess of N1.2trillion and a deposit base in excess of N700billion.

The bank has a risk assessment rating of AA- by Global Credit Rating (GCR –South Africa). A- by Agusto & Co (Nigeria) and BBB by Fitch Ratings Ltd (New York).

Some of the bank’s objective apart from aiming to be ranked amongst the top 3 Nigerian Banking Groups by 2012 it also wants to become a major catalyst for growth across the African continent.

The Bank of Ghana has however, asked all banks in the country to recapitalise by December 2010.

According to the new regulations, banks owned by Ghanaians are required to recapitalize to the tune of GH¢25 million by 2010 and raise it to GH¢60 million by 2012 and banks with foreign owners operating in Ghana are required to raise GH¢60 million by 2010.

And banking industry watchers say, the recapitalization of banks is a good decision even though, not an easy one for banks because of the difficulty in raising capital; it is however good, because most banks in the country are too small making the running of these banks uneconomical.

The new requirement by the Central Bank is expected to lead to acquisitions and mergers of banks.

Mergers moreover would make banks stronger and they would be able to diversify.

By Emmanuel K. Dogbevi