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Business News of Wednesday, 11 July 2018

Source: citibusinessnews.com

FBN Bank falls on mother company in Nigeria to recapitalize

FBN Bank has stated that it will rely on its mother bank in Nigeria to raise 25 percent of the money it needs to meet the minimum capital requirement set by the Bank of Ghana.

According to the bank, such a move will put it in a good position to meet the 400 million cedis minimum capital requirement set by the central bank.

Banks in the country have up until December this year to meet the requirement.

The Bank of Ghana recently disclosed guidelines to facilitate moves by banks that seek to undertake any merger or acquisitions to meet the target.

In an interview with Citi Business News, Head of Retail Banking at FBN, Mr. Eric Fia said with support from its parent bank in Nigeria will help it meet the capital requirement before the deadline.

He maintained that plans have been drawn to meet the capital requirement with the help of its mother bank, hence the bank is not under pressure to raise the funds.

“With the 400 million cedis capital requirement announced by the Bank of Ghana, we don’t have any problem at all. So we are very sure that any moment from now, this 400 million cedis will be met”.

“We are going to mobilize part of the funds from here in Ghana, but a bigger part of it will come from our parent bank, about three-quarters of it from Nigeria,” he added.

He made the comments at the sidelines of the first mini draw of the bank’s “Save and Win” promotion.

About Draw

FBN Bank held the first of two Mini draws. The grand draw will happen later in the year.

Ten winners were drawn. The winners were customers from various branches of the bank’s 19 branches operating across the country.

The first three winners got a Samsung smartphone each while the other 7 won 100 cedis worth of airtime credits.