Banking | - Part 71

South Africa’s Rand Pares Gain as Inflation Unexpectedly Slows

JOHANNESBURG (Capital Markets in Africa) – South Africa’s rand pared an advance against the dollar and benchmark bond yields extended a drop as traders cut bets on an interest-rate increase this year after inflation unexpectedly slowed last month. Growth in the consumer price index eased to 4.4 percent in May, from 4.5 percent the previous month. The median estimate of economists in a Bloomberg survey was for the inflation rate to accelerate to 4.6 percent….

Kenya Rate-Cap Champion Unmoved as Banks Pledge to Boost Lending

Posted on by The Editorial Team

NAIROBI (Capital Markets in Africa) – The Kenyan lawmaker who spearheaded legislation that placed a limit on the interest rates banks can charge is ready to block efforts from the regulator, Treasury and the industry to scrap the rules. “We have not seen any change in the banks, in fact it’s more of grandstanding: ‘if you remove the caps, we give the loans,’” Jude Njomo said in an interview in the capital, Nairobi, on Monday. “Right now,…

Mozambique Cuts Key Rate as Inflation Lingers Near 2015 Low

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MAPUTO (Capital Markets in Africa) – Mozambique’s central bank reduced its benchmark lending rate for the sixth consecutive meeting as inflation lingered near a 2015 low and the regulator tries to spur an economy that’s forecast to expand at the slowest pace in 18 years. The Monetary Policy Committee cut the benchmark interbank rate, known by its Portuguese acronym MIMO and introduced in April 2017, by 75 basis points to 15.75 percent, Banco de Mocambique Governor Rogerio Zandamela told…

Capitec Bids for Business Bank to Veer From Consumer Lending

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JOHANNESBURG (Capital Markets in Africa) – Capitec Bank Holdings Ltd. is switching gears from the focus on consumer lending that made it South Africa’s fastest-growing financial institution by bidding for the domestic business-banking unit of Caixa Geral de Depositos SA. The lender is among four acquirers short-listed for CGD’s Mercantile Bank. Nedbank Group Ltd., a group of investors consisting of Bayport Financial Services Pty Ltd. and Public Investment Corp., as well as a rival consortium comprising…

Kenyan Treasury Bats for Banks as Rate-Cap Battle Looms

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NAIROBI (Capital Markets in Africa) – Kenyan lenders have strong allies in a bid to overturn interest-rate caps that have eaten into earnings. But support from the central bank and Treasury might not be enough to restore the stellar profits they once enjoyed. Treasury Secretary Henry Rotich surprised lawmakers last week by saying he plans to repeal legislation limiting borrowing costs, backing calls by central bank Governor Patrick Njoroge who has complained the rule complicates monetary policy by making credit demand hard…

Angola’s banking system is stable despite weak economic activity

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LUANDA (Capital Markets in Africa) – The International Monetary Fund indicated that Angola’s banking system is stable despite weak economic activity that has weighed on the banks’ capital metrics and asset quality in the previous three years. The sector’s risk-weighted capital adequacy ratio reached 18.9% at the end of 2017 relative to 19.2% at end-2016, but was well above the regulatory minimum of 10%. The IMF noted that Banco Nacional de Angola (BNA) introduced a new liquidity requirement that limits…

Namibia Holds Key Rate at 2016 Low as Prices Stay in Check

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WINDHOEK (Capital Markets in Africa) – Namibia’s central bank left its benchmark rate unchanged for a fifth consecutive meeting as it seeks to safeguard the country’s reserves and maintain its currency’s peg with the South African rand. The southwest African nation’s Monetary Policy Committee maintained its key interest rate at 6.75 percent Wednesday, Governor Ipumbu Shiimi told reporters in the capital, Windhoek. That’s the lowest since February 2016. Last month, its counterpart in South Africa kept its key gauge…

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