Banking | - Part 128

Nigerian Central Bank closes RDAS/WDAS Foreign Exchange Window

The Central Bank of Nigeria (CBN) today published a circular closing down the RDAS Window stating that forthwith, all demands for foreign exchange should be channeled through the Interbank Foreign Exchange Market. The Apex bank also stated that it will continue to intervene in the interbank foreign exchange market to meet genuine/legitimate demands.This is a positive development as we have always clamoured for a one-way quote to reduce speculation and unhealthy malpractices. The development can…

Cross-border expansion of Nigerian banks: has it improved the continent’s regulatory and supervisory frameworks?

Posted on by The Editorial Team

Nigerian banks expanded into other African countries following the 2004 consolidation that increased minimum capital requirements more than tenfold. Most banks expanded their operations domestically and internationally by increasing branch networks in the domestic market and opening subsidiaries abroad. United Bank for Africa (UBA) and Access Bank combined are operating in more than 20 countries on the continent. Cross-border expansion has taken place through the setup of subsidiaries, thus adding to the number of banks…

What’s driving African banking…and what’s stalling it?

Posted on by The Editorial Team

Very few Africans make use of formal financial services. In fact, only 24% of adult Sub-Saharan Africans had a bank account in 2012, while the global average was 50%, says the Global Findex Database. In the following countries less than 10% had an account that year: Sudan, Senegal, DRC, Central African Republic, Chad, Niger, Madagascar and Mali. The main reason for this low level of financial inclusion in Sub-Saharan Africa (SSA) is low income. Closely…

IMF Says Pan-African Banks Could Pose Systemic Risks

Posted on by The Editorial Team

Rapid expansion of cross-border banking in Africa in recent years poses oversight challenges that, if unaddressed, may increase systemic risks, IMF staff said. A recent report noted that pan-African banks have a systemic presence in around 36 countries and are now more important than the continent’s long-established European and American banks. Pan-African banks are improving competition, especially in host countries with small markets, driving innovation, and bringing new opportunities for diversification for the home countries….

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