Banking | - Part 124

Reserve Bank of Malawi Raises Policy Rate by 2% as Inflation Surge in November

LILONGWE, Malawi, Capital Markets in Africa — Reserve Bank of Malawi Monetary Policy Committee (MPC) met on 4th November 2015 and examined the external and domestic economic developments and decided to raise the Policy rate to 27 percent from 25 percent in order to contain second round effects of rising inflation, according to statement signed by the Reserve Bank of Malawi governor Mr Charles S.R. Chuka. The Liquidity Reserve Requirement (LRR) at 7.5 percent having adjusted…

Moody’s says Nigeria’s Sterling Bank’s credit profile likely to be resilient to downside risks

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London, Capital Markets in Africa — Nigeria’s Sterling Bank Plc is likely to remain resilient to downside risks despite its rising problem loans, says Moody’s Investors Service in a report published today. Moody’s outlook on the bank is stable for the next 12-18 months. “The bank reported 1H2015 results that show a continued upward trend in the bank’s non-performing loans (NPLs) and highlights vulnerabilities in the bank’s asset quality given its rapid loan growth in…

South Africa’s banking system outlook is stable despite economic headwinds — Moodys

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Johannesburg, South Africa, Capital Markets in Africa — Moody’s Investors Service has revised to stable from negative its outlook on the South African banking system for the next 12-18 months. Although subdued economic growth and rising interest rates will increase non-performing loans (NPLs), the rating agency nevertheless expects banks’ financial performance to remain resilient. “The stable outlook reflects our view that South African banks are well-positioned to withstand headwinds from the country’s weak economy,” says…

BMCE likely to maintain solid profits from pan-African operations, outweighing risks — Moodys

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Casablanca, Morocco, Capital Markets in Africa — BMCE Bank’s (Banque Marocaine du Commerce Extérieur) rising profitability is increasingly mitigating the risks arising from its rapid pan-African expansion, says Moody’s Investors Service in a report published today. Moody’s report, entitled “Banque Marocaine du Commerce Exterieur: Stronger Profits Increasingly Mitigate Risks of Rapid Pan-African Expansion”. The rating agency’s report is an update to the markets and does not constitute a rating action. BMCE Bank (ba3/BCA, Ba1/Local Currency…

Nigerian Banks’ Foreign Currency Liquidity Still Tight — Fitch Ratings

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LAGOS, Nigeria, Capital Markets in Africa — Cutting reserve requirements will not add liquidity to the Nigerian banking system because it releases no additional foreign currency (FC), says Fitch Ratings. Substantial government-related FC deposits are exempt from reserve requirements and have already been withdrawn from the system after the government ordered all public-sector deposits to be moved from commercial banks into the centralised Treasury Single Account (TSA) earlier this month. Nigeria’s Monetary Committee reduced mandatory…

Kenya’s Monetary Policy Committe retains Policy Rate at 11.50 percent

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Nairobi, Kenya, Capital Market in Africa — At the end of the September 22nd 2015 Monetary Policy Committee (MPC) meeting, the MPC kept the policy rate (Central Bank Rate — CBR) at 11.5 percent, with intention to keep inflation in control which was trending towards the five percent target. The benchmark interest rate, was kept unchanged for the third time after it was raised in July by 150 basis points to current level. The MPC, also…

Nigerian Banks Resilient but Face Tough Outlook — Fitch Ratings

Posted on by The Editorial Team

London (Capital Markets in Africa): Nigerian banks are operating in increasingly difficult conditions and this is likely to result in a sharp deterioration in profitability, asset quality, liquidity and capital ratios, says Fitch Ratings. We said the sector outlook was negative in December. GDP figures for 2Q15, released yesterday, show weaker year-on-year growth of 2.4%, down from 4% in the previous quarter, the slowest quarterly growth rate for over 10 years. The volatile operating environment…

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