Kenya Banks Face New Row with Lawmakers over Deposits Plan

Kenya Banks Face New Row with Lawmakers over Deposits Plan

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…

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Angola Banks Appeal for Bailout as Oil Slump Cuts Liquidity

Angola Banks Appeal for Bailout as Oil Slump Cuts Liquidity

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…

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Kenya Central Bank Expects Current-Account Gap to Stabilize

Kenya Central Bank Expects Current-Account Gap to Stabilize

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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Diamond Said to Mull Atlas Options Including Taking Private

Diamond Said to Mull Atlas Options Including Taking Private

LONDON (Capital Markets in Africa) – Bob Diamond, co-founder of Atlas Mara Ltd., is weighing options including taking the sub-Saharan African bank acquirer private, people with knowledge of the plan said. One option being considered is to find an investor or private-equity vehicle to back such a move, one of the people said, asking not to be identified because the details are private. A merger with another financial institution with a presence in Africa is also being weighed,…

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Barclays Africa Faces Apartheid-Era Investigation on Bankorp

Barclays Africa Faces Apartheid-Era Investigation on Bankorp

JOHANNESBURG (Capital Markets in Africa) – Barclays Africa Group Ltd. is being investigated by South Africa’s graft ombudsman over whether it received undue state support when it bought Bankorp during the apartheid era, and whether it should repay the money. The Barclays unit said it’s “regrettable” that a preliminary report by the ombudsman was leaked to the media, adding that the document contains “several factual and legal inaccuracies.” The Johannesburg-based lender, then known as Absa, did not benefit from…

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Cash Is King in Mugabe’s Zimbabwe as Dollar Supply Dries Up

Cash Is King in Mugabe’s Zimbabwe as Dollar Supply Dries Up

HARARE (Capital Markets in Africa) – Walk into Pedzai Nyika’s furniture factory in Zimbabwe’s capital and he’ll offer a 20 percent discount straight away — provided you pay in cash. He’s not alone. A shortage of banknotes gripping the southern African nation has become so dire that business are offering huge discounts to cash-paying customers and limiting the amounts they can charge on credit cards or refusing to accept them altogether. “I am desperate. Business is…

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African banks’ regulation and supervision is improving, Says Moody’s

African banks’ regulation and supervision is improving, Says Moody’s

LAGOS (Capital Markets in Africa) – While increased regulation and improved supervision have strengthened the financial stability of African banks, progress has not been uniform and gaps remain, especially in the areas of enforcement and cross-border coordination, Moody’s Investors Service said in a report today. The report, entitled “Banks — Africa: Gaps in Banking Regulation and Supervision Are Progressively Being Addressed”, is now available on www.moodys.com. Moody’s subscribers can access this report via the link…

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