The Bank of Ghana has issued a provisional license to Union Savings and Loans to operate as a universal bank.
Union Savings and Loans gets banking license
Ghana will now have 30 universal banks from the 29 recorded last year.
“It was (licence) issued at the end of last year. So they (Union S&L) have the approval to proceed as a universal bank,” unnamed source told the Business and Financial Times.
Union savings and loan will now have to meet the 120 million cedis minimum capital to operate a universal bank as against the 15 million cedis for a savings and loan company.
The savings and loans company has so far seen its total assets grow from a paltry GH¢15million in 2012 to GH¢184 million in 2014, representing about a 12-fold growth.
At the same time deposits saw a 10-fold jump from GH¢10 million in 2012 to almost a GH¢100million in 2014. The loan portfolio has also grown exponentially by almost 12 fold.
“With these figures we have indeed not only become a strong brand in the tier 2 banking space but also joined the top five savings and loans companies in the country,” the Managing Director, Philip Oti-Mensah, said at a mid-year review meeting of the financial institution last year.
Nana Otuo Acheampong, a banking analyst, welcomed Union Savings and Loans to the banking industry. “They are welcome to the club. They have done well to move from savings and loans to a universal bank, the big boys club,” he said.
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