The Executive Secretary for GREDA, Sammy Amegayibor contends the merger of GHL Bank and First National Bank (FNB) leading to their survival rather than demise bodes well for the mortgage market.
He debunked assertions the merger will impact the mortgage market negatively stressing there’s a bigger portfolio, expansive skilled personnel and robust data base at the service of clients and other related parties such as estate developers, service providers and vendors.
While GHL Bank might have headed into the marriage with First National Bank as a result of challenges in raising the new minimum capital requirement of GHc400 million by December 2018, First National Bank consented to the marriage due to a desire for growth and reach.
First National Bank had capital injection from its parent bank in South Africa meeting the GHc400 million demand by the Bank of Ghana. First National Bank is a formidable mortgage financing unit in South Africa seeking to become a dominant player in Ghana aided by GHL’s clients.
GHL Bank says it remains the nation’s leading provider of mortgage financing and FNB is one of the largest banks in Africa and a member of the FirstRand Group, a dominant player in global banking stressing customers will therefore benefit from an even wider range of products and services as a result of the institutions successfully coming together.
By Michael Eli Dokosi/goldstreetbusiness.com