Access/ Diamond merger: Implications for Diamond Bank’s depositors

With the hint at the weekend that Access Bank may have completed final negotiations on the takeover of Diamond Bank, the primary concern for many Nigerians will be what happens to their deposits.

coupled with the fact that all parties yet to issue any official statements, depositors with tier 2 bank are likely to be wondering what may happen to their deposits.

Results for the nine months ended September 30, 2018, show the bank had N1 trillion in deposits from customers. These comprised N383 billion in demand deposits, N452 billion in savings deposits and N231 billion in term deposits.

Since Access Bank is the dominant entity, Diamond Bank customers would be absorbed into the Access Bank fold and issued new account numbers. This could take weeks to happen but before then, we expect regular banking activities to continue without many hitches.

Deposits with Diamond Bank are and will remain safe, as the bank is in no form of financial distress. The Central Bank of Nigeria (CBN) would also be on hand to provide any required support should there be panic withdrawals.

The apex bank would most likely issue a statement, before the close of business today, of some sort assuring customers of the safety of their deposits.

Except you are not comfortable being a customer to Access Bank, there is absolutely no need to close your account with Diamond Bank. This does not mean caution should be thrown out of the window but we strongly believe that the outcome of the merger will produce a stronger bank in terms of customer deposits.

Diamond Bank is known for its tech-driven solution banking so it is also likely that Access Bank will acquire some of these technological assets and incorporate it into its banking services.

For several other Diamond Bank accounts, particularly premium banking services, it may not be wise to retain such accounts particularly if they attract high charges in exchange for unique services.

The services may not be as excellent considering the pressure of the merger and may not be worth it. Such accounts may be moved to a regular account to avoid undue charges.