Banking

NAIROBI (Capital Markets in Africa) – A Kenyan lender formed out of a takeover last year is urging the central bank to increase safety buffers to drive more takeovers in East Africa’s biggest economy.   Raising minimum capital requirements as much as tenfold to 10 billion shillings ($99 million) will “force marriages” between lenders too afraid of the risks that come with mergers and acquisitions, said NCBA Group Plc Chief Executive Officer John Gachora. With over…

LONDON (Capital Markets in Africa) – Morocco’s central bank held its interest rates steady, opting against ending a nearly four-year freeze even after King Mohammed VI called on lenders to open their taps for businesses. A decision on Tuesday kept the benchmark rate at 2.25%. It’s a surprise because the central bank started to shift toward monetary easing in September by lowering mandatory reserves for lenders, a measure that unlocks liquidity and could revive the flow of credit…

JOHANNESBURG (Capital Markets in Africa) – Old Mutual Ltd.’s homecoming may get even rockier next year as an ongoing battle with its former head risks distracting the South African insurer from handling weak economic growth and rising competition. The firm will end 2019 still sparring with ex-Chief Executive Officer Peter Moyo. The dispute has been in court since June, about a year after Old Mutual moved its listing back to Johannesburg. That return — celebrated…

ADDIS ABABA (Capital Markets in Africa) – Ethiopia is shaking up its economy by opening many industries to foreign investors. Just don’t expect the government to loosen its grip on banks yet. “Banking, insurance, micro-credit, and micro-savings services” will be reserved only for domestic investors, according to draft regulations released by the Ethiopian Investment Authority. International aviation, where state-controlled Ethiopian Airlines dominates, power, postal services, and weaponry will be done by, or in partnership, with…

LAGOS (Capital Markets in Africa) – Nigeria’s central bank is in no mood to loosen its grip on the naira. Governor Godwin Emefiele said there was no reason to fret over a fall in foreign reserves to their lowest level in almost two years and vowed to continue defending the currency. “A marginal drop in reserves below $40 billion is not enough to create fears in any mind,” Emefiele said to reporters Tuesday in Abuja, the capital…

JOHANNESBURG(Capital Markets in Africa) – African Bank Holdings Ltd. plans to offer overdrafts as the South African lender adds income sources to draw more distance between itself and its collapsed former parent. “We are looking to relaunch our credit-card product next year and we are looking to launch an overdraft product as well,” Chief Executive Officer Basani Maluleke said by phone. “The diversification of our funding is also a critical success factor for the bank.” The lender’s…

NAIROBI (Capital Markets in Africa) – Kenya’s central bank cut its benchmark interest rate for the first time in 16 months as the removal of a cap on borrowing costs will make it easier for policy decisions to flow to help boost credit and economic growth. The Monetary Policy Committee lowered the rate to 8.5% from 9% to prop an economy “operating below its potential,” Governor Patrick Njoroge said in an emailed statement. The decision was in…