In the face of the delayed announcement in the merger processes between the two banks, fear may grip uncertain customers to withdraw their monies from both First Atlantic Bank and Energy Bank respectively. Customers are the pivotal strength of every bank and without deposits banks can never function. However, there will be an absolute reaction from these customers if management fails to give a vivid update on the merger procedures. In the wake of the recent banking crises that happened in the country, most customers have lost an ample believe in any financial house and may prefer to keep their monies in their various homes rather than any financial institution.
There is a concrete testament that the confidence level of customers may reduce if the two banks fail to give an update on the merger processes as a tableau of raising the minimum capital in the coming weeks. Customers may be in distress and will lose faith in the two banks. Hence, there will be a sheer cash withdrawal from both banks by customers. Most customers are on the alert and are prepared to move their monies if there is any negative response from these two banks. With limited time and with only two weeks left for the possible deadline, both banks are yet to finalize their documents and hold on for the necessary approval to be given for them to merge.
First Atlantic Bank has struggled to meet the minimum capital and Energy Bank has failed miserably in its IPO issuance in view of raising funds to meet the central bank’s minimum capital. These two financial intermediaries signed MOU to join forces to strategically meet the GHC 400,000,000 minimum capital as requested by the central bank. Currently, the stated capital of the two banks is GHC 228,678,000 which is below the threshold acceptance level.