The Ghana Association of Banks (GAB) has directed commercial banks not to sign onto the amended debt exchange offer until its members’ demands are met, due to the uncertainty regarding the impact of the debt restructuring on the banking industry. It therefore wants an extension to the deadline for the amended debt exchange offer.
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Nigerian banks stock ATMs with new naira bills
Nigerian banks have stopped over-the-counter payment with new naira and have moved the same to the paying machines, known as Automated Teller Machines (ATMs), BusinessDay findings have revealed. This is in response to the directive by the Central Bank of Nigeria (CBN) last week that all banks should with immediate effect load the ATMs with the new naira and stop over-the-counter disbursement.
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CBN lending to commercial banks increases
Nigerian banks have borrowed N11.15 trillion from the Central Bank of Nigeria (CBN) in 2022 via the Standing Lending Facility window, which is a line of short-term credit provided for commercial banks to meet immediate short-term withdrawals from their customers. Borrowing increased significantly month-on-month and reached N1.93tn in June. However, borrowing through the CBN’s Repo declined by 24% to N10.7tn in 2022 compared to N14.07tn in 2021.
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Wide-ranging interview on financial sector reform in Ethiopia
On entry of foreign banks: Local banks in Ethiopia are worried about competition from foreign banks, but the National Bank of Ethiopia will open the sector gradually, allowing only a limited number of foreign banks and limiting the number of branches and management involvement to protect local banks. The big international banks are not expected to enter the market as the Ethiopian market is considered too small for them. Most of the foreign banks that will enter will be African and all laws and restrictions applied to local banks will also apply to foreign banks which may discourage foreign banks from entering.
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Access Holdings abandons takeover of Sidian Bank
Access Holdings’ planned takeover of Kenya’s Sidian Bank has been halted due to the regulator’s concerns that the deal would result in a significant concentration of market share. The Central Bank of Kenya had previously approved the takeover and the two companies had signed a binding agreement, but the regulator has since decided to reject the deal.
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NSIA Banque Côte d’Ivoire’s credit rating upgraded
NSIA Banque Côte d’Ivoire has had its credit rating upgraded by Bloomfield Investment, citing strong credit quality, high certainty of timely repayment, and strong liquidity factors. This upgrade is due to the bank’s successful implementation of its strategic plan “Altitude 22-26”, which included reducing non-performing loans, increasing activity indicators, and compliance with regulations. The bank plans to continue its strategy to achieve its goals for 2023.
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UBA Ghana Ranks Number One in Customer Experience Survey
United Bank for Africa (UBA) Ghana has been ranked the highest in the retail segment of the Ghana Banking Industry Customer Experience Survey 2022 conducted by KPMG Ghana. It was closely followed by Standard Chartered, ABSA, CalBank and NIB, in that order. The insights from the report is expected to help banks rethink their approach to customer experience.
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Kenyan banks challenge M-Pesa in mobile money market
Kenyan banks are looking to take on mobile money leader M-Pesa by growing their own mobile money offerings, either by building their own platforms or by building on existing platforms, including M-Pesa itself. The move comes as a market report shows that the COVID-19 pandemic had a marked impact on non-cash payments to banks, with many banks quickly improving their digital offerings to remain competitive.
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Fidelity Bank Launches Five-Year Gender Inclusion Plan
Fidelity Bank in Ghana has launched a five-year action plan to promote gender-inclusive banking and increase the number of women in leadership positions, as well as improve access to financial services for women-owned businesses. The plan was developed in partnership with AfricInvest and BIO Invest, and with the help of specialised advisory firm Value for Women.
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Sudan and Kenya agree to resume banking relations
Sudan and Kenya have agreed to resume banking relations. Ambassador Kamal Jubara announced that the meeting between the two countries’ leaders covered bilateral relations, economic and commercial issues, and stability in South Sudan. The meeting discussed details of the resumption of banking relations between the two countries and provided directives for direct transactions between Sudanese and Kenyan banks.
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GTBank UK fined for AML failures
The UK subsidiary of Nigeria’s Guaranty Trust Bank (GT Bank) has been fined £7.6m ($9.3m) by the Financial Conduct Authority (FCA) for further failures in its anti-money laundering systems and controls, after previously receiving a fine for similar failures in 2013. Despite the previous fines and warnings, the bank failed to take appropriate action to fix the issues, according to the FCA. GT Bank did not dispute the findings and agreed to settle, which made it eligible for a 30% discount on the fine.
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Banks release guidelines as enforcement of CBN withdrawal policy begins
The Central Bank of Nigeria (CBN) has begun enforcement of a policy that limits the amount of cash that can be withdrawn from banks, and Nigerian banks have released guidelines on how to comply with this policy. The policy is meant to curb money laundering and other illicit financial activities, and limits cash withdrawals to N500,000 ($1,346) per day, and N3 million ($8,377) per month.
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DFCU Bank appoints acting Managing Director
DFCU Bank has appointed William Sekabembe as the new acting Managing Director. He takes over from Juma Kisaame who will remain as a director on the bank’s board.
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Republic Bank appoints Akua Botchway as new Company Secretary
Ghana’s Republic Bank has appointed Akua Botchway as its new company secretary, effective January 1, 2023. Botchway has over 20 years of experience in the banking industry and has held leadership positions in various banks in Ghana. She will be responsible for overseeing the bank’s legal and regulatory compliance, as well as corporate governance matters.
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Kenya sees competition among banks in AI adoption
In Kenya, seven banks are competing in the adoption of artificial intelligence (AI) in the sector. The banks are using AI in customer service, fraud detection and anti-money laundering efforts. The adoption of AI by the banks is expected to improve efficiency and reduce costs.
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Nigeria’s banking sector sees poor performance in 2022
Nigeria’s banking sector ended the year with poor performance as five banks saw their value drop 5.5% from N2.57tn ($6.8bn) in 2021 to N2.43tn ($6.5bn) at the close of 2022, according to data from the Nigerian Exchange Limited. The share prices of all five banks, known as Tier-1 banks, also fell at the end of 2022 compared to the previous year. Analysts attribute the slump to a lack of foreign investors in Nigeria’s capital market.
Categories: BanksTags: Nigeria -
AFG Hoding to acquire AfrAsia Bank
AFG Holding, the banking group owned by Atlantic Group, has agreed to acquire a 74.48% stake in AfrAsia Bank from IBL and National Bank of Canada, pending regulatory approval. The acquisition would see AfrAsia Bank, the third-largest bank in Mauritius, fall into the hands of AFG Holding, owned by Ivorian billionaire Koné Dossongui. AFG Holding says the deal fits into its strategy to develop a major pan-African banking group offering a wide range of sophisticated financial services.
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Development Bank of Ethiopia Says It Will Not Finance Government Projects
The Development Bank of Ethiopia has announced that it will not be financing any government sector in the 2022/2023 fiscal year. The bank will allocate Birr 30bn for approval and Birr 24bn for disbursement to private investments in agriculture, industry, small and medium enterprises. The bank has been making an annual profit of Birr 4bn for the past two years and its capital has reached Birr 37bn.
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There is a need to create public banks in SA: Mapaila
The South African Communist Party (SACP) has called for the creation of public banks in the country, arguing that the country’s commercial banks are only benefiting the wealthy, while the Reserve Bank needs to change its monetary policy regime adopted since 1996, which has failed South Africa, according to SACP General Secretary Solly Mapaila.
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Stanbic IBTC Rejigs Board
Stanbic IBTC Holdings has appointed Stanley Jacob as head of its fintech subsidiary, Stanbic IBTC Financial Services, following regulatory approval. The appointment comes alongside several other changes at the financial holding company’s subsidiaries. CEO Demola Sogunle said the appointments were in line with the firm’s tradition of rewarding excellence and would strengthen its capabilities for better customer service delivery.
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(!) African Banking: The Profitability Opportunity
New McKinsey Report: African banks can increase their productivity to enhance competitiveness, build resilience, and deliver new value to customers—even in the face of a tightening global business environment.
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DBE increases funding for industrialization drive
The Development Bank of Ethiopia has increased funding to the private sector in an effort to accelerate the country’s industrialisation, according to its President Yohannes Ayalew. The bank approved 22 billion birr ($564m) in 2020 and plans to approve 30 billion birr in 2021, with a disbursement of 24 billion birr. Ayalew added that the bank’s profits were around 4 billion birr per year for the past two years. The bank’s capital has risen from 2 billion birr to 37 billion birr, he said.
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KCB finally buys DRC Bank
KCB Group has completed its acquisition of Trust Merchant Bank in the Democratic Republic of Congo (DRC), taking an 85% stake in the lender. The Kenyan firm said the deal will boost its income diversification, establish its presence in new markets and enable it to accelerate its market presence in the DRC. The acquisition also includes Afrissur SA, an insurance subsidiary, which KCB said will provide an opportunity to diversify its offerings in the DRC’s insurance sector. KCB CEO Paul Russo said the deal would provide “enhanced banking products” to TMB’s existing customers.
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Union Bank exits NGX-30 index as Wema Bank joins
Union Bank of Nigeria and Oando have left the NGX-30 index, a list of the top 30 companies listed on the Nigerian Exchange (NGX) in terms of market capitalisation and liquidity, while Wema Bank and BUA Foods have joined the list. MRS Oil was added to the oil and gas index and Oando was removed, while African Alliance Insurance was removed from the insurance sector.
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Nigeria’s most memorable corporate deal in 2022 was between Titan Trust
Titan Trust Bank has acquired Union Bank in Nigeria through a mandatory takeover. The new company acquired 1,927,532,558 ordinary shares in Union Bank, which represented 6.59% of the company’s shareholding, valuing the shares at 50 kobo each. Titan Trust Bank was established in December 2018 and received its national banking license in April 2019. Union Bank, one of the oldest and most successful financial institutions in the country, was established in 1917 and has a network of over 255 sales and service centres across Nigeria and more than 925 ATMs.
Categories: Banks