Andani advocates amalgamation of local banks

The Managing Director of Stanbic Bank Ghana Limited, Alhassan Andani, has called for the amalgamation of local banks to make the sector robust.

Speaking to the media at an event in Kumasi, Mr Andani stated in South Africa, there are five local banks – Standard Bank, Amalgamated Bank of South Africa (ABSA), FND, Ned Bank and Sasfin Bank, which control 90 percent of the industry.

“Meanwhile, all the big international banks are in South Africa, but they just can’t get their way through. The SA banks are so powerful. They have got some of the best techniques and people that whatever you bring from City Bank, Standard Chartered Bank or Barclays will simply not fly,” he noted.

The Stanbic Bank boss stressed the need for government to shield the citizens from serious threats.

He revealed that the Amalgamated Bank of South Africa was established for modernization, adding that though it is a local bank, it has the pedigree of a global bank.

Recently, some Ghanaian have expressed concerns about Bank of Ghana’s increase of the minimum capital requirement of banks from GH?120 million to GH?400 million.

The Stanbic Bank Managing Director was not enthused about efforts by some Ghanaians to paint a gloomy picture about the banking industry as a result of the recent collapse of the two banks –Capital and UT Banks.

He said the collapsed banks did not control even five percent of total industrial assets before BoG made the intervention.

“So if 95 percent of your industry assets are safe, will you call it a crisis? Will you be right to call it crisis?” he asked rhetorically.

He expressed concern about the negative reportage about the banking industry in Ghana.

According to him, foreigners own a lot of capital in Ghana, and are receiving the biggest benefit of the GDP growth, while Ghanaians have become recipients of salaries in the profit distribution chain.

“Is salary the most important thing in the profit distribution chain? No! So we should think and question capital formation and not get emotive of the capital of banks,” he added.