Going through notes made at the forum, I couldn’t help but to think of Ghana’s banking and financial sector, we are made to believe that all is well and that we are doing extremely well in this sector, to the contrary
Regulations pretty shaky to me
Monitoring of banks> shaky
Protection of customers deposits, fairly good
Banks goal of making high profits, excellent
Now the reasons for this, based on my opinion; which of course I stand to be corrected is that most of the industry is made up of Nigerian consolidated banks which of course have bigger capital base, great player for the economy’s growth in the sense that it promotes competition and brings out the best in our banking industry but is that what is happening currently? They are rather finding ways and means to predate on customers illiteracy to enrich the organizations and to expand their capital base, how many indigenous banks are in the industry to really think of us ….. Since when have Government bureaucrats been more adept at predicting the needs of an industry than industry insiders themselves? I foresee danger in our banking system if measures are not properly put in place to check all this since government is prone to go the recapitalization and consolidation way, setting a capital requirement which will make it very hard for new banks to enter the market
To elaborate more, the most enthusiastic banks capturing most of our market is the foreign Nigerian banks that to me have not yet completed their recapitalization and consolidation process though Mr. Charles Soludo and others think otherwise, I don’t believe that those who have access to the largest pools of money are necessarily the right people to be in control of the banking sector – or any sector for that matter. They should leave room for those entrepreneurs who have the ability to achieve more with less money.
“But you recall how too many cooks do spoil the soup; in the banking system there were too many boys and girls, parents with crutches, grannies with guts and the likes all acting as the cooks in one pot. Millions of Nigerians lost money, many died from crashes and collapsing of the banks, and Nigeria’s worst public-relations blight called 419 became so successful. Boy that was not so nice. ” a colleague pointed out.
Using a financial equivalent of the famed OPTION-A4, now Soludo hands Obasanjo about twenty five clean-shaven cooks who look exactly the same and could perform so too! They’ll likely cut and create our pot into such equal share for the good of all eaters or users.
You must know by now that God isn’t going to do for you what you won’t do for yourself.
There is an old adage that “if you see an old man’s beard on fire, fetch water, it might be yours next” I do not see strategic true Ghanaian bankers putting in place measures or policies or setting up think tanks to tackle serious crises should we get into one. It is good to learn from those ahead of us but they obviously do not have to think for us. We should encourage our young entrepreneurs to come into the field with their ingenuity and not scared of any capital requirements and consolidations basing our minimum capital requirement on a percentage of assets to allow different sizes of banks to operate.
Listed below are some of the banks and how they came about and how they are going to affect us..

1 UBA: The bank which emerged after the fusion of former United Bank for Africa and former Standard Trust Bank is already there. With over 400 branches spread across the country, it wants to be a neighborhood bank in Nigeria as well as in the African region.

2. First Bank: First Bank is planning to acquire some smaller banks as well as extend its boundaries beyond Nigeria. Already, it has received both the CBN and SEC’s consent to combine its business with MBC International Bank Plc and FBN (Merchant Bankers) Limited. Its deal with Ecobank Transnational Incorporated (ETI), the parent company of Ecobank Nigeria Plc, with a view to consolidating with the group, would enable it capture the West African markets in the second phase of its consolidation.

3. Union Bank: CBN has been granted Approval-In- Principle to Union Bank of Nigeria, Broad Bank, Universal Trust Bank and Hallmark for the merger arrangements, while integration of their business operations has commenced.

4. Zenith Bank: Zenith is going it alone. The bank which was one of the first to surpass the N25 billion capital base requirement has already begun a reengineering process to enable it take a substantial share of the Nigerian market as well as play a leading role in the African market.

5. Guaranty Trust Bank: GTBank was one of the few banks that never had problems with the CBN threshold. With subsidiaries in some West African countries, it is realigning to battle the region with others.

6. Intercontinental Bank: The Intercontinental Group is now operating as a single entity. The bank has therefore become the second consolidated bank in the country after the UBA and with the largest shareholders’ funds in the Nigerian banking industry.

7. Standard Chartered: With a new investment of about $147 million, the bank has now been recapitalized. The new financial position of the bank, which presently stands at N26 billion is expected to be announced soon after CBN’s approval.

8. Oceanic Bank: After the completion of the verification of capital exercise by the CBN, the bank now has about N26.5 billion as shareholders’ fund. It has acquired two banks (International Trust Bank and Stanbic Bank). Significant growth in shareholders’ fund is expected from its recently concluded 2005 financial year.

9. Access Bank Plc: The bank has emerged the third consolidated bank with a combined capital base of N28 billion, having combined its business with that of Marina International Bank Plc and Capital International Bank Plc. Access Bank has commenced the second phase of its consolidation with the move to acquire Midas Bank Plc.

10. Afribank Group: CBN has granted Approval-In-Principle to the Afribank Group that comprises Trade Bank Plc and Afribank International (Merchant Bankers) Limited. The group has begun the initial valuation on the three banks to determine the share exchange ratio. CBN has approved a total shareholders’ fund of N25. 016 billion for Afribank (Afribank Nigeria Plc and Afribank International Bank (Merchant Bankers) consolidated.

11. IBTC Chartered: The bank which was to go it alone has now received CBN’s approval-in-principle to merge with Chartered Bank and Regent Bank. This is expected to bring their shareholders’ fund to over N35 billion. The three banks last week held their court-ordered meetings where shareholders overwhelmingly supported the merger.

12. Diamond Bank Group: Diamond Bank has finally acquired Lion Bank having received final approval of the regulatory authorities. The group’s shareholders’ fund now stands at about N28 billion and is expected to go up to about N31 billion at the end of this exercise.

13. Skye Bank Group: Skye Bank Plc comprising Prudent Bank Plc, EIB International Bank Plc, Bond Bank and Reliance Bank now has a shareholders’ fund of about N30 billion. The group has received CBN’s approval-in-principle. A new entrant into the group is Cooperative Bank which is expected to bring on board about N5 billion in shareholders’ fund subject to CBN’s verification of the last capital raised.

14. Wema Bank Group: comprises Wema Bank, National Bank and Lead Bank. The group is well positioned to meet the CBN’s requirement. Wema Bank recently garnered gross proceeds amounting to N16.64 billion at the end of its public offer and added to an initial shareholders’ fund of N8.06 billion would put it at about N24.7 billion. Wema Bank has gotten the CBN approval-in principle to acquire National and Lead Banks.

15. FCMB Group: Comprises First City Monument Bank and Co-operative Development Bank has now concluded the court-ordered meetings. The group has also acquired NAMBL. With a shareholders’ fund now in excess of N27 billion, the group is set to conclude all necessary regulatory requirements and fuse into one before the end of November 2005.

16. Platinum Bank: Platinum Habib Group has filed for CBN’s approval in principle. The fusion of the two banks would produce over N25 billion capital base. Their shareholders at respective court-ordered meetings approved the scheme merger.

17. Fidelity Bank: The bank now has FSB International Plc and has received the CBN approval-in-principle on their merger pact. It has also received pre-merger consent of the CBN for its merger with Manny Bank. CBN has approved N11.7 billion of the offer proceeds of Fidelity Bank, representing 70 per cent of its offer target. The approval has raised Fidelity’s shareholders’ funds to about N29 billion. Shareholders of Fidelity and SB Banks at respective court-ordered meetings approved the scheme merger.

18. NIB/Citibank: The Citigroup – parent company of NIB recently made good its promise to recapitalise its local subsidiary with the injection of over N11.7 billion ($90 million). This sum, combined with the contribution of the Nigerian shareholders, once formally approved by the CBN, will double the NIB’s capital to N25 billion.

19. Sterling Bank Group: This group consists of Trust Bank of Africa Limited, Magnum Trust Bank, NBM Bank, NAL Bank Plc and Indo Nigeria Bank. Presently, the group has over N25 billion capitalisation. The group, which would be in court this week to secure a date for its court-ordered meetings, have appointed top management positions which would run the emerging bank with Mr. Babatunde Dabiri as the MD/CEO. The Securities and Exchange Commission (SEC) has approved the merger scheme of the Sterling Bank group, paving way for the five banks in the group to hold court ordered extra ordinary general meetings as from December 12, 2005.

20. First Inland Bank: Comprising First Atlantic Bank Plc and Inland Bank (Nig.) Plc. The group recently held a successful Court-Ordered Meetings of shareholders of all the banks. IMB and NUB International Banks have joined, a development that would take the combined shareholders’ funds of the group to N30 billion.

21. North Omega Bank: NUB International Bank Plc has opted out of the group. The remaining banks left are Bank of the North, Omega Bank Plc New Africa Bank Plc, Trans International Bank Plc and Fountain Trust Bank Plc. The group has since been granted a pre-merger consent by the CBN.

22. Devcom/ETB: The CBN has approved the subscription of N9 billion via private placement which, automatically takes the total amount raised by private placement to N13 billion. This, in addition to the capitalized profits of ETB brings to N26.5 billion the combined shareholders’ fund of the group. Last week the two merging banks held their court-ordered meetings where shareholders overwhelmingly supported the merger.

23. Citizen Guardian: The group comprises Citizens Bank, Guardian Express Bank, and ACB International Bank Plc. While Citizens pulled out of an earlier arrangement with Union Bank, Guardian Express also pulled out of an earlier arrangement with Platinum Bank. The group, which hopes to have a combined shareholders’ fund in excess of N27 billion recently got approval-in-principles for their merger. An interim board chaired by Prof. Anya O. Anya has been inaugurated.

24. Unity Bank Group: Unity Bank Group had successfully concluded its court-ordered meetings on Monday 5th December 2005, while Intercity Bank Plc, the vehicle for the merger, had conducted its Extra-ordinary General Meeting on the same day during which its shareholders approved the change of its name to Unity Bank Plc and the creation of additional 30 billion ordinary shares of 50 kobo each. An agreement was signed on Thursday 8th December 2005 which admitted NNB International Bank Plc into the fold. This means there are now seven constituent banks in the Group including the Tropical Commercial Bank Plc, Pacific Bank Limited, First Interstate Bank Plc and Centre Point Bank Plc. NUB, NNB and IMB.

25. Ecobank Nigeria: Following its successful public offer of 4.8 million ordinary shares of 50 kobo each at N3.20 per share, Ecobank Nigeria Plc now has a shareholders’ funds of N20 billion. Its parent company, Ecobank Transnational Incorporation (ETI) has made a commitment to supply the shortfall that may be required to achieve the stipulated minimum capital before December 31, recapitalization deadline. Ecobank Nigeria’s public offer is currently being verified by the regulatory authorities.

Kudos to Unique Trust though but your risk taking ability is quiet shaky, the rest of the banks to me are not working enough for their money…. That is my opinion, drop me a mail @ kinglartey3@gmail.com and let me know what you think