Merging ADB with NIB economically senseless – Laud Mensah

Professor Laud Mensah, Head of the Business School at the University of Ghana, has asserted that merging ADB with NIB would be economically senseless.

He expressed this view in an interview with Korku Lumor on Class 91.3 FM.

"You cannot put two big banks together," he said, adding: "Prudent economic management will not allow merging two state-oriented banks."

Professor Mensah highlighted that any outcome from the decision-making level is likely to create imbalances in the bank's balance sheet.

He emphasised that the finance minister, supporting this initiative, should provide a paper indicating the economic value they intend to generate by allowing ADB to acquire NIB.

Additionally, he suggested that external funds would be the best way for an economy to divert.

Professor Mensah stated that if ADB absorbs NIB, their balance sheets would be weakened.

NIB, being cash-trapped, needs an external investor to inject funds into the bank.