All is well that Ends Well: Adieu Intercontinental Bank!!!

I somewhat share a slightly different sentiment on perhaps the most popular business combination (Merger and Acquisition) we have had in recent times. Access Bank takeover of Intercontinental Bank

A lot of folks have questioned the rationale and workability of such a huge project, expressing their dismay at how Access (a frog) could swallow Intercontinental (an elephant). While I understand where most folks are coming from in the sense that Intercontinental bank was the mother of modern day banking in Nigeria with an intimidating back up of resources (financial and infrastructure) enough to blow out its competition into oblivion, I dare to tell you it’s all past glories. The Inter we knew is no longer the one that was acquired. Infact the deception remained largely in its robust retail offering and personal attachment of its loyal customers to the brand. The foundation could no longer hold, critical issues bordering on corporate governance had robbed the bank of its former glory.

An erstwhile unknown access, steadily grew its might over the years, imbibing strict corporate governance and sustainability practices into its operations. this guaranteed them a top 10 finish in Nigeria’s most profitable business as at 2008. At the time I remember telling a friend about the institution and its strategic drive for success. More to their blessing was having an astute business man as the head, aig (as he is called) understood the Nigeria business terrain and worked his life out to make the bank what it is right now. My brother was amongst his recruit at the time and I can remember how he became an alien to us, due to his work, but I loved the fact that he was sold out to the organization’s vision. such was the determination of the access army that provoked the biggest argument on the subject matter, how could they buy over intercontinental bank?

So the question truly is

How could the mother inter leave its workers to the mercy of another? A bank that had the arguably the best employment offer (including a severance pay), 1^st bank to cross the $1 billion in first tier capital

My views.

· The banking sector is a critical part of any economic system, so important that their slip could cost the economy an irrecoverable loss.

· Intercontinental bank and the rest four affected banks were undercapitalized and posed a risk to the entire banking system.

· "The banks lost their money in bad loans

· The excessively high level of non-performing loans in inter was attributable to poor corporate governance practices, lax credit administration processes and the absence or non-adherence to credit risk management practices.

· CBN had to act. the economy needed urgent CPR, the banks (and invariably the economy) needed bailouts.

And so it happened, CBN looked inwards, got them off to indigenous takeover and that is what got us to where we are today.