Amid fear of contagion in the global banking industry due to the collapse of Silicon Valley Bank and Signature Bank after their capital ratio fell below regulatory approval, Access Holdings has handed fresh capital to increase Access Bank’s liquidity to shelter the commercial bank against insolvency.
This comes at a time when two major banks in the United States, Silicon Valley Bank and Signature Bank went insolvent or bankrupt, and fear of Credit Suisse collapsing in Switzerland.
In a statement, over $300m has been invested into the bank by the parent company, and is expected to improve Access Bank’s total capital ratio.
It would be recalled that Access Bank has been splashing capital on a series of acquisitions, which is expected to burden the lender’s capital base.
It acquired African Banking Corporation in Mozambique, Grobank Limited in South Africa, as well as Cavmont Bank Limited in Zambia.
The lender is also in talks to acquire Finibanco Angola S.A. and the African Banking Corporation subsidiary in Botswana and will use part of the $300 million to finance its African expansion strategy.
“Access Holdings Plc (“Access Holdings”) is pleased to announce its completion of a US$300 million (Three Hundred Million United States Dollars) capital investment into its flagship subsidiary, Access Bank Plc (“Access Bank” or “the Bank”) (‘the Investment’), the proceeds of which will supplement the capital needs of its African expansion strategy.
“Over the years, the Bank has made significant strides towards attaining strong market presence in the key trade and payments corridors across the African continent,” Access Bank wrote in the circular.
