Banking | - Part 103

The Banking Bill: A State of Transition for the Kenyan Banking Sector

NAIROBI (Capital Markets in Africa) – Banking (Amendment) Bill by Parliament to cap banks’ lending rates at 400 bps above the Central Bank of Kenya’s base rate and impose a deposit floor at 70% of the CBR was signed into law on 24th of August 2016. If the law is implemented immediately, banks will charge a maximum of 14.5% on loans while paying about 7.35% on deposits held in interesting earning deposits. Impact on Banks…

Nigeria Central Bank set limits on banks’ investment in govt Islamic bonds

Posted on by The Editorial Team

LAGOS ((Capital Markets in Africa)) – Nigeria’s central bank has set commercial banks’ investment in Islamic bonds issued by state governments to 10 percent of the total amount on offer and fixed a maximum tenor of 10 years for the bonds, it said in a circular. The central bank said it considered the need to issue the guidelines to enhance the quality of sukuk instruments and to grant liquidity status at its discount window as well…

South Africa’s PIC Has ‘Appetite’ for Barclays Africa Stake

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JOHANNESBURG (Capital Markets in Africa) – Public Investment Corp., Africa’s largest money manager, said it’s interested in boosting its holding in Barclays Africa Group Ltd. and is still considering the best partner to team up with for a bid. “There is appetite from our side to increase our stake,” Chief Executive Officer Dan Matjila said in an interview in Pretoria on Tuesday. “We’re still assessing which is the best partner to go with and the best partner with…

FirstRand Considers Nigerian Acquisitions as Valuations Ease

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LAGOS (Capital Markets in Africa) – FirstRand Limited, Africa’s biggest bank by market value, said it’s considering acquisitions in African countries including Nigeria where the slide in oil prices and a devalued currency has undercut prices. “Asset prices in jurisdictions such as Nigeria have recently become much more realistic,” Chairman Laurie Dippenaar said in the Johannesburg-based company’s annual report, published on FirstRand’s website on Tuesday. “We feel more comfortable to look for opportunities to deploy shareholder capital…

Barclays Agrees to Sell Egyptian Unit to Attijariwafa Bank

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JOHANNESBURG (Capital Markets in Africa) – Barclays Plc agreed to sell its Egyptian business to Morocco’s Attijariwafa Bank as the British firm shrinks its global operations and speeds up the sale of unwanted assets. The deal will probably be completed by the end of this year, the London-based lender said in a statement Tuesday. The disposal will boost the bank’s common equity Tier 1 ratio by 0.1 percentage point, reducing risk-weighted assets by about 2 billion pounds…

Nigeria’s Bad Loans Soar as Banks Battle Slumping Economy

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LAGOS (Capital Markets in Africa) – Bad loans in Nigeria’s banking system soared to more than double the limit set by the regulator as the industry struggles with an economic downturn. The ratio of non-performing loans to total credit rose to 11.7 percent at the end of June from 5.3 percent at the end of 2015, the Abuja-based Central Bank of Nigeria, which requires banks to keep the measure below 5 percent, said in a report…

Nigeria Banks Find Raising Cash ‘Tough’ in Shrinking Economy

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Nigerian banks are finding it difficult to raise capital as a shrinking economy cuts revenue and deters investors, the industry’s regulator said. “It’s been tough,” Umaru Ibrahim, managing director of the Nigerian Deposit Insurance Corp., said in an interview in the southwestern city of Abeokuta on Tuesday. Banks require “adequate capital that would help them cushion any adverse effect of loan defaults or losses,” he said. Ibrahim’s comments come as Access…

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