The Bank of Ghana (BoG) is increasing its support for commercial banks to help address the growing demand for the US dollar by large corporations and other businesses. The move follows slower activity by the central bank in supplying US dollars on the forex market. The decision is expected to boost investor confidence and strengthen the gains made by the cedi, which ended 2022 as the second weakest currency on the African continent with a year-to-date loss of 38.86% to the US dollar, according to Bloomberg. The cedi is also the fourth worst currency globally.
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Absa Bank Uganda extends loan repayment amid economic uncertainty
Absa Bank Uganda has announced a range of financing packages for salaried individuals in order to help customers get through the current uncertain economic environment. The packages include a two-month repayment holiday, 0% arrangement fees, and a seven-year repayment period for unsecured loans for new customers. The bank is also offering up to UGX 2bn ($0.54m) on mortgages and 0% arrangement fees for customers purchasing homes. The moves come as Absa seeks to help its customers achieve their goals in the new year, including home ownership, purchasing land, buying a new car, or starting a business.
Categories: Banks -
Banks borrowing from CBN drops 15% to N11trn in 2022
Banks borrowing from the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF) fell 15% to N11tn ($30.3bn) in 2022, down from N13tn the previous year, due to a slowdown in business activity and a decrease in short-term cash requirements. The CBN lent money to banks and merchant banks through the SLF at an interest rate of 100 basis points above the Monetary Policy Rate. Finance experts said the drop was caused by tight liquidity conditions in the banking sector. However, VP of Highcap Securities, David Adnori, attributed it to economic uncertainty following the 2023 general election.
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Ethiopia: Shirshir Addis and Anbessa International Bank Agree to Work Together
Shirshir Addis Business Group and Anbessa International Bank have agreed to collaborate on financial and investment activities, as well as share knowledge and skills. Shirshir Addis is a sister company of Arif Pay Financial Technologies and exports coffee and sesame, while also importing cooking oil, textiles, canned foods, and vehicles. Anbessa Bank currently has 280 branches nationwide and a paid-up capital of BIRR 2.6 billion.
Categories: Banks -
Ethiopia: Tsedey Bank Says Its Total Asset is Birr 44 Billion
Tsedey Bank is aiming to increase its total assets to BIRR 65 billion within the next five years, according to a statement made during the bank’s first shareholder meeting in Bahir Dar. The bank began operations in September 2022 with a subscribed capital of BIRR 11 billion and a paid-up capital of BIRR 7.8 billion, and had 148 branches at the time. Tsedey Bank was originally launched as a rural credit service in 1996 with BIRR 3 million, before becoming a microfinance institute, Amhara Credit and Savings Institute (ACSI), in 1997.
Categories: Banks -
Nigerian Banks and Fintech Companies Suspend International Transactions on Naira Cards
Several Nigerian banks and fintech companies have suspended international transactions on naira cards. The directive, which is set to come into effect on December 31, will also affect offshore ATMs and point of sale (PoS) transactions across the country. The move is reportedly connected to the Central Bank of Nigeria’s (CBN) policy of reducing dollar spending abroad and saving foreign exchange for the economy. In March, financial institutions in Nigeria cut international spending on naira cards from $100 to $20 per month.
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Zenith Bank announces retirement of two Executive Directors from its Board
Zenith Bank has announced that two of its Executive Directors, Ummar Shuaib Ahmed and Dennis Olisa, will retire from its board on December 28, 2022, after their tenure as executive directors has ended.
Categories: Banks -
WEMA announces CEO’s retirement, appoints new MD/CEO
Ademola Adebise, the managing director of WEMA Bank, will retire on January 2, 2023, after 13 years of service at the bank. His position will be filled by Moruf Oseni, the current deputy managing director, subject to the approval of the Central Bank of Nigeria.
Categories: Banks