First Rand Bank to have competitive urge in Ghana

Some banking consultants have revealed new comer in the Ghanaian banking industry First Rand Bank, will have a competitive urge in the Ghanaian banking space.

[contextly_sidebar id=”IzVNhhEJepouTtOU8Eofh6u4safC46XI”]The Bank of Ghana has given its final approval for the institution to commence full operations in the country.

The South African lender secured provisional license last year but needed the final approval before it could open its doors to the public.

In an interview with Citi Business News, banking consultant, Nana Otuo Acheampong said the profitability of First Rand Bank gives them an added advantage to embark on big ticket projects.

‘’They are coming with a group head which has a capital of over 90 billion dollars so I presume that coming here, they are coming in with more than the  120 million cedis as the minimum capital requirement by the central bank’’.

He says, once First Rand Bank does that, their competitive urge will be their ability to do big ticket projects as opposed to the existing ones some of whom do not have that clout to do such projects.

First Rand is currently financing several infrastructural projects including, the Kpong Power Project.

The bank will have its head office at the Accra Financial Centre; an office complex which it partly owns.

In an earlier interview, the Chief Executive of First Rand, Sizwe Nzasana said they will be operating as a commercial bank.

In 2013 First Rand Bank was one of the bank’s that expressed interest in acquiring Merchant bank now Universal Merchant Bank (UMB).

The Bank of Ghana subsequently approved the sale of Merchant Bank to private equity firm, Fortiz, after SSNIT, majority shareholder of Merchant Bank, rejected an offer from First Rand Bank.

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By:  Lorrencia Nkrumah/citifmonline.com/Ghana