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OmniBank and Sahel Sahara Bank to merge  

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The merging process between Omnibank and Sahel Sahara Bank are almost complete following the signing of a Memorandum of Understanding which will govern the process to meet all requirements for final approval by the Bank of Ghana.

In a yet to be released statement cited by Radio Ghana, the Banks confirmed the merger which has been speculated in the media for some time.

It said the Banks are working to fill the shortfall in meeting the new Minimum Capital Requirement of 400 million Ghana Cedis, before the 31st December 2018 deadline and also ensure that there are no job losses.

Read The Memorandum of Understanding, (MoU), Below:

OmniBank Ghana Limited (“OmniBank”) and BSIC Ghana Limited, trading as Sahel Sahara Bank (“BSIC”) are pleased to announce that in a letter dated 14th August 2018 the Central Bank informed the two banks as follows:
“The Bank of Ghana (BoG) has “no objection” for merger talks between BSIC Bank (Ghana) Ltd. and OmniBank Ghana Ltd. to commence. You are, however, to note that the final approval of a merger will only be considered after all the necessary documentation has been submitted for review.”
By this arrangement, the banks have since signed a Heads of Terms (“Memorandum of Understanding”) to govern their intention to merge and commenced the process to meet all requirements for final BoG approval.
In view of this, we are grateful to the Bank of Ghana, our cherished customers and all other stakeholders for their support and cooperation. We are committed to supporting the Bank of Ghana in its quest to ensure stability, confidence and growth in the banking sector.
We also wish to assure our customers and the investing public that this merger when finally completed, will position our Bank as a major player in the banking industry to support private sector growth and Ghana’s development agenda.
Thank you.
Dated: Monday, 17th September 2018
Additional Information
The shareholders, Directors and Management of the two Banks took a decision to merge due to, among others, the following reasons:
1.    The two Banks are of similar balance sheet sizes and similar business models, and would like to continue serving the SME market due to the huge potential and impact on the economy of Ghana. The merger will create a bigger Bank with the capacity to manage the opportunities and risks thereof.
2.    The combined entity will have 46 branches, spread across the country to improve service delivery to our over 150,000 customers.
3.    The two banks have maintained and published unqualified audited financial statements as required by the Bank of Ghana, and have Capital Adequacy Ratios (CAR) above the BOG’s minimum requirement of 10%.
4.    The two Banks have never received liquidity support from the central Bank.
5.    In support of the merger, existing and potential shareholders have shown commitment to increase capital to fill the shortfall in the new Minimum Capital Requirement of GHS400 million, before the 31st December 2018 deadline. The Banks have also agreed to ensure that there will be no job losses for the permanent staff due to the merger.
About OmniBank and BSIC
OmniBank Ghana Limited
OmniBank is a Ghanaian owned bank which started in 1989 as a Savings and Loans Company with focus on small and medium-sized enterprises (SMEs).
Since becoming a bank in July 2016, the bank has provided finance for a wide range of sectors including trade, manufacturing, construction and services as well as private individuals and institutions. OmniBank Ghana prides itself on its excellent customer service and provides products and services tailored to its clients’ needs.
Today, OmniBank serves about 125,000 clients via its 29 branch network and 25 ATMs across the country. As of 30 June 2018, OmniBank had a total asset size of GHS603 million. The total loan volume was GHS223 million against customer deposits of GHS447 million. The company employs about 352 permanent staff. For additional information, visit www.omnibank.com.gh
BSIC Ghana Limited:
As a subsidiary of BSIC Group, BSIC (Ghana) Limited started its operations as a licensed universal bank, under the trading name ‘Sahel-Sahara Bank’ on 25th March 2008.
The BSIC Group itself has a stated capital of 500 Million Euros. The BSIC Group is jointly and severally owned by fourteen (14) African countries including: Benin, Burkina Faso, Central African Republic, Chad, Cote d’Ivoire, Gambia, Ghana, Guinea, Libya, Mali, Niger, Senegal, Sudan and Togo.
The group neither pays nor repatriates dividends but rather uses any profits so accrued for the development of the economy in which the bank is resident.
The Group aims to mobilize financial resources from all over the world and channel them to the productive sectors of the economies of member states.
Today, BSIC Ghana serves about 30,000 customers via its 17 branch network and 17 ATMs across Ghana. As of 30th June 2018, BSIC Ghana had a total asset size of GHS623 million.
The total loan volume was GHS286 million, against customer deposits of GHS477 million. The bank employs 262 permanent staff.  For additional information, visit  www.bsic.com.gh

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