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BoG assures of measures to safeguard operations of Merchant Bank
From: Ghana | Joy Business          Published On: July 12, 2013, 18:00 GMT
 
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BoG assures of measures to safeguard operations of Merchant Bank
Bank of Ghana has assured it has put in place measures to safeguard the operations of Merchant Bank and protect the interest of customers and all stakeholders.

This was after the regulator announced in a statement that it was unable to proceed with the approval of FirstRand Bank of South Africa plan to take over Merchant Bank Ghana.

The Central Bank added that it will provide liquidity support to MBG, if needed, to address any liquidity challenges it may face.

It will l also continue to monitor developments in Merchant Bank and the banking industry to ensure safety and soundness of banks.

The Bank of Ghana had earlier stated that, it was having difficulties in approving the deal, because of difficulties among shareholders on clearing Merchant Bank's bad debts, which JOYBUSINESS gathers currently stand at almost, GH˘200 million.

Merchant Bank last year, accepted a GH˘176.4 million from FirstRand in exchange for 75 percent stake in merchant.

FirstRand’s bid comprised an acquisition of shares from existing shareholders for GH˘140 million and a subscription for new shares for GH˘36 million.


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