Even though The Managing Director (MD) of Fidelity Bank, Jim Baiden did not name the particular bank(s) they are targeting, he maintained that the move is a strategy to entrench the bank’s position as one of the biggest indigenous banks in the country.
The MD’s revelation follows the Bank of Ghana’s increase of the minimum capital in September 2017. The Bank of Ghana increased the Minimum Capital Requirement from 120 million cedis to 400 million cedis.
The Governor, Dr Ernest Addison, after announcing the new Minimum Capital Requirement said banks have the go-ahead to merge and do business.
In an interview with Accra-based Citi FM, Baiden said Fidelity has shown interest in merging with some other banks.
“Meeting the new minimum capital requirement of 400 million cedis is not a problem at all for Fidelity Bank. We are looking into the banking space. It is possible that we will be interested in a few banks and signal consolidation.”
“It is likely that Fidelity will merge or invite other smaller banks to merge with us into a bigger entity,” he added.
Even though he did not name the particular bank(s) they are targeting, he maintained that the move is a strategy to entrench the bank’s position as one of the biggest indigenous banks in the country.
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“Fidelity bank is one of the two indigenous banks who have emerged as very strong because our capital adequacy is one of the highest. Our liquidity ratio is also one of the highest in the country.”
Baiden spoke to Citi Business News on the sidelines of the launch of a book titled “Developing Africa’s Financial Services: The Importance of High Impact Entrepreneurship,”.
The book which highlights the success story of Fidelity Bank was written by Prof. Dana Redford.