'You cannot put two big banks together' - Economist speaks on ADB-NIB merger

Head of Business School at the University of Ghana, Professor Lord Mensah, has said it does not make economic sense for government to merge these two financial institutions - ADB and NIB.

According to him, these state-owned institutions are significant banks that can keep operating on their own.

Speaking on the ADB-NIB merger on ClassFM, Professor Mensah said, "You cannot put two big banks together...Prudent economic management will not allow merging two state-oriented banks."

The economist said the move was likely to create imbalances in NIB's balance sheet if put together.

He opined that an external investor is needed to inject funds into the cash-strapped NIB for it to be revived.

Meanwhile, the Minority Leader in Parliament said government’s decision to merge the National Investment Bank with the Agricultural Development Bank will lead to about 800 job losses.

Member of Parliament of Bolagatanga Central, Isaac Adongo, said it is an unwise decision being made by the government and a ploy to take full possession of the bank.

He added that there are other options the government can adopt to improve the bank’s viability instead of handing it over to ADB.

SA/NOQ

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