Banking | - Part 97

South Africa’s Central Bank Keeps Benchmark Rate Unchanged

JOHANNESBURG (Capital Markets in Africa) South Africa’s Reserve Bank kept borrowing costs unchanged for a fifth straight meeting even as inflation forecasts worsened. The Monetary Policy Committee unanimously decided to leave the benchmark repurchase rate at 7 percent, Governor Lesetja Kganyago told reporters Tuesday in the capital, Pretoria. That’s in line with the forecast of all 24 economists surveyed by Bloomberg. The key lending rate has remained unchanged since March after the MPC raised it by 200 basis points since 2014…

Kenya Banks Face New Row with Lawmakers over Deposits Plan

Posted on by The Editorial Team

NAIROBI (Capital Markets in Africa) – A new row is brewing between Kenyan banks and parliament after a lawmaker proposed placing restrictions on deposits by state-owned companies, months after the state imposed a cap on lending rates. Kimani Ichung’wah, vice chairman of the Public Investments Committee, drafted a bill seeking to bar state-owned corporations from investing or depositing public funds with lenders in which the government has a stake of less than 20 percent. Ichung’wah declined to…

Nigeria to Check Capital of Underwriters as Recession Weighs

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LAGOS (Capital Markets in Africa) – Nigeria’s insurance regulator plans to audit the capital position of underwriters to ensure their ability to pay out claims as the country struggles to recover from a recession. The verification, scheduled for the first quarter, aims to protect “policyholders and beneficiaries of insurance contracts against unexpected losses,’’ the Abuja-based National Insurance Commission said in an e-mailed statement Monday. Nigeria’s economic downturn and conditions specific to the industry “have created the need for…

Angola Banks Appeal for Bailout as Oil Slump Cuts Liquidity

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LUANDA (Capital Markets in Africa) – Angolan banks are appealing to the government to help put together a bailout package to protect account holders as lenders reel from low oil prices that make up almost all of the nation’s foreign-exchange earnings. Financial assistance could come from the administration of President Jose Eduardo dos Santos or be shared by all of the southwest African country’s 28 operational lenders, Amilcar Silva, chairman of the Association of Angolan Banks, said in…

Ghana Leaves Key Rate Steady as Policy Makers Seek Stable Cedi

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ACCRA (Capital Markets in Africa) – Ghana’s central bank unexpectedly kept its benchmark rate unchanged as it balanced the risks to inflation and economic growth. The Bank of Ghana’s Monetary Policy Committee left the rate at 25.5 percent, Governor Abdul Nashiru Issahaku told reporters Monday in the capital, Accra. Only two of six economists in a Bloomberg survey said the central bank would keep borrowing costs unchanged, while the remaining four predicted a rate cut of 50 to…

Africa’s Biggest Bank Chasing Nigerian Deals After Oil Slump

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LAGOS (Capital Markets in Africa) – The crisis in Nigeria is throwing up opportunities for Africa’s largest bank. FirstRand Limited, which is seeking an acquisition of mid-sized lender in the continent’s most populous nation, is also considering one other target after ending talks with two lenders because of differences over price, Chairman Laurie Dippenaar said. The Johannesburg-based company would prefer an institution with a big branch network, though is unlikely to buy any of the country’s large banks,…

Kenya Central Bank Expects Current-Account Gap to Stabilize

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NAIROBI (Capital Markets in Africa) – Kenya’s current-account deficit will stabilize after shrinking last year as the currency strengthens, exports increase, tourism improves and remittances climb, central bank Governor Patrick Njoroge said. The gap probably narrowed to 5.2 percent of gross domestic product in 2016 from 10.4 percent 1 1/2 years earlier, he said in an interview Thursday in Davos, Switzerland. The bank will continue to intervene to slow the shilling’s depreciation and appreciation, trying to smooth…

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