Fair trade commission approves FMB, ICB merger

Malawi Competition and Fair Trading Commission (CFTC) has approved the merger of First Merchant Bank (FMB) and International Commercial Bank (ICB) arguing it will not affect competition in the country.

CFTC acting executive director Charlotte Malonda, in a telephone interview on Tuesday, said the merger would enable ICB customers enjoy better services.

“The CFTC board has approved the proposal of the merger because it will have an impact on the market. ICB is the last commercial bank to enter the market and has a small number of customers. The merger will not have a big effect on the market share. ICB was apparently struggling in meeting Reserve Bank of Malawi regulatory requirements and the merger will rescue it and avail better services to customers,” said Malonda.

In June, FMB acquired 100 percent shares in ICB Malawi. It also acquired shares in ICB Mozambique and ICB Zambia all of which are licenced commercial banks in their respective countries.