The economic hurdles that Opportunity Bank of Malawi (OBM) had with its partner MyBucks Group have led the bank to merge with New Finance Bank, authorities have confirmed.
According to a statement by OIBM chairperson Frank Hume, the process of merging the two banks is at an advanced stage.
Hume disclosed that the merger will see the two banks growing strong their financial stand arguing that the leadership has promised commitment to help the objective of the merger.
“The technical discussions have commenced and by nature are rather complex. Opportunity International has an expert team of advisors to help conclude the merger on the best terms possible.”
“A detailed application for the merger and recapitalization of the new bank will be sent to the Reserve Bank of Malawi for approval. As more information is received and can be shared, this will be provided,” reads part of the statement by Hume.
He further explained that the merger will take a period of six weeks to be completed. For the past years, banks have been seen working under one name due to economic hiccups that witnessed some banks being sold in the process.
Among such banks include Malawi Savings Banks (MSB) that now works under Financial Holdings Limited (FDH) while IndeBank was sold to National Bank of Malawi (NBM).