Banking

ACCRA (Capital Markets in Africa) – Ghana’s banking regulator said it created a new lender through a merger of five insolvent banks as the country issued 5.8 billion cedis ($1.2 billion) in bonds to clear their debt. Bank of Ghana revoked the licenses of Unibank Ghana Ltd., Royal Bank Ltd., Beige Bank Ltd., Sovereign Bank Ltd. and Construction Bank Ltd., GovernorErnest Addison told reporters Wednesday in the capital, Accra. The lenders were among the smallest of Ghana’s…

LAGOS (Capital Markets in Africa) – Bitcoin evangelists preach that the virtual currency will one day supplant the dollar. UBS says they may have to wait a while since it can’t be considered money or even a viable asset class yet. For Bitcoin to replace U.S. money supply — paper bills, coins, travelers’ checks and the like — its price could need to hit nearly $213,000, or its network’s processing capabilities would need to dramatically improve, a…

JOHANNESBURG (Capital Markets in Africa) – The South African Reserve Bank will adjust monetary policy to keep inflation expectations anchored close to 4.5 percent if price risks materialize, Deputy Governor Daniel Mminele said. The rand is likely to continue to be vulnerable due to the change in sentiment toward emerging markets and rising trade tensions, he said. That and uncertainty around the speed at which electricity prices will increase are upside risks to inflation, Mminele said in a copy…

NAIROBI (Capital Markets in Africa) – The Central Bank of Kenya unexpectedly cut its key policy rate by 50 basis points to 9% today, citing well-anchored expectations of inflation and growth below its potential. The decision was against our forecast and the median forecast of economists in a Bloomberg survey for no change. Well-anchored inflation expectations and below potential economic output gives room for accommodative monetary policy, according to MPC. Food and fuel costs are…

ACCRA (Capital Markets in Africa) – Three Ghanaian banks are close to abandoning talks for a merger as the two smaller parties contend that their operational models are incompatible with the bigger counterpart, according to two people familiar with the matter. Premium Bank Ltd. and BSIC Ghana Ltd. are no longer keen for a tie-up with GN Bank Ltd. and will pursue talks with other parties, said the people, who asked not to be identified because they’re…

JOHANNESBURG (Capital Markets in Africa) – The nationalization of the South African Reserve Bank could be a protracted and expensive legal process because some of its shareholders seek to make a profit out of the move, Governor Lesetja Kganyago said. “A group of shareholders is agitating for the SARB’s nationalization as they believe that they are entitled to a share of the assets of the SARB and see this as an opportunity to make enormous profits at…