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Banque du Caire to sell stake by 2020; Ghana's finance sector cleanup continues

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Banque du Caire to sell stake by 2020; Ghana's finance sector cleanup continues

GULF COOPERATION COUNCIL

* Saudi Arabia's finance ministry has warned the public against dealing or investing in cryptocurrencies and other virtual currencies as they are outside the scope of regulatory framework and are not traded by financial institutions in the country.

* The Qatar Central Bank plans to introduce central supervision of the Islamic finance sector, according to International Adviser. The regulator said it has tapped a consultancy firm to prepare Sharia standards on governing Islamic banking products and their legal oversight. However, the central bank did not provide a timeline for the plan.

* S&P Global Ratings maintained the BBB long-term local-currency issuer credit and financial strength ratings of Doha Bank Assurance Co. LLCon CreditWatch negative, where it was initially placed April 11.

* Bahrain-based Ahli United Bank BSC and Kuwaiti unit Ahli United Bank KSCPagreed to sell their 196,096,150 shares in Kuwait and Middle East Financial Investment Co. K.S.C.P., equivalent to 75.6% of outstanding shares, to Hamad Saleh al-Thekair at 58.043 Kuwaiti fils per share, subject to regulatory approval.

* National Bank of Bahrain BSC has launched a new financial restructuring business within the bank and named Bruce Wade CEO of the new division.

* Kuwait Finance House (Bahrain) BSC (c) launched an advanced open banking infrastructure, allowing it to partner with global financial technology firms to expand services, Gulf Daily News reported.

* Fadi Jawdat Hindi stepped down as CEO of Dubai-based Takaful Emarat - Insurance (PSC), effective Aug. 18.

* Gulf Bank KSCP said the representative of the General Investment Authority, Basel Youcef Ahmed al-Rachid Albader, has resigned from his position, and was replaced by Fawaz Ahmed Mohamed al-Awadhi.

* Capital Intelligence Ratings affirmed the A-/A2 long- and short-term foreign-currency ratings of National Bank of Ras Al Khaimah PSC and Bank of Sharjah PJSC. The agency also assigned the United Arab Emirates-based lenders "bbb" bank standalone ratings. The outlook on the long-term foreign-currency and bank standalone ratings is stable.

REST OF MIDDLE EAST AND NORTH AFRICA

* Israel's capital markets authority has received over 2,000 applications from financial technology firms, prompting it to consider amending its licensing regime to spur competition and growth in the sector, Coin Geek reported, citing newspaper Calcalist. The watchdog has reportedly formed dedicated teams for blockchain and other emerging financial technology, which would become its priority.

* Tarek Fayed, Banque du Caire SAE's chairman and CEO, expects the Egypt-based bank to sell a minority stake of 30% to 40% by the end of this year or in early 2020 through a capital increase and a stake sale to a strategic investor, Reuters reported.

* Economists expect the Central Bank of Egypt to lower interest rates by at least 100 basis points during its monetary policy meeting tomorrow, after significantly lower-than-expected inflation figures last month, an poll by Reuters showed. Some analysts also expect the central bank to continue easing monetary policy at its meeting in September.

EAST AND WEST AFRICA

* The Ghana central bank's cleanup of the savings and loans sector could entail up to 4,000 job cuts, but the total number will still depend on what the appointed receiver of the collapsed firms would do with the assets and the size of government support to be received, Tweneboah Kodua Boakye, executive secretary of the Ghana Association of Savings and Loans Companies, told Bloomberg News. The central bank recently revoked the licenses of 23 companies in the sector, citing insolvency.

* The Bank of Ghana extended the deadline for rural and community banks and microfinance firms to meet their minimum capital requirements to Feb. 28, 2020. In 2015, the regulator required firms in the sector to meet a minimum capital of 1 million cedis by 2017-end and 2 million cedis by June 30, 2018. Meanwhile, Yaw Gyamfi, executive director of the Association of Ghana Microfinance Institution Network, told Joy Business that some member companies would struggle to meet the requirement by the new deadline, adding that members found it difficult to comply with the requirement by the initial deadline.

* A team from the Financial Action Task Force is set to visit Nigeria to assess the compliance of local banks and financial institutions with anti-money laundering and counter-terrorist financing measures, according to The Punch. The body also plans to check the branches of selected banks and foreign exchange companies.

* Coronation Merchant Bank Ltd. raised 10 billion naira in a commercial paper offering, the proceeds of which would be used for the bank's short-term funding requirements, The Punch wrote. The instruments have a 180-day maturity and a 14% effective yield.

* Nigeria-based Wema Bank PLC could face legal prosecution for its involvement in processing illegal funds for Dana Air, Business Post Nigeria wrote. The airline reportedly collected inflight donations for Sri Sai Vandana Foundation between 2014 and 2018 without due process and the money was transferred through an account in Wema Bank without due registration with the Corporate Affairs Commission.

CENTRAL AND SOUTHERN AFRICA

* South African insurer Old Mutual Ltd. announced that clients of Allan Gray now beneficially own 10.0018% of its total issued ordinary shares. The investment manager also urged the Old Mutual to develop contingency plans amid its legal dispute with former CEO Peter Moyo, CNBC Africa reported.

* The threat of a bailout by the IMF could force South Africa to implement reforms to bolster its struggling economy as calls from state-controlled companies for additional funding and rescue weigh on the country's budget, Bloomberg News noted. Companies are increasingly looking to third parties for support amid an apparent lack of action by the government, experts told Bloomberg. However, President Cyril Ramaphosa and the ruling African National Congress party are unlikely to request assistance from the fund.

* Zimbabwean Finance Minister Mthuli Ncube said the country plans to issue new banknotes and coins soon to replace the quasi-currency known as bond notes that was introduced to mitigate cash shortage, Bloomberg News wrote. Ncube added that the return to the Zimbabwean dollar that can be used in foreign exchange will be backed by an undisclosed amount of forex reserves. In June, the government abolished the multicurrency system in the country and replaced it with its interim currency, the RTGS dollars, which are electronic dollars, bond notes and coins.

* Keabetswe Pheko-Moshagane, managing director of Barclays Bank of Botswana Ltd., said the bank has completed 69% of projects related to its transformation shift to Absa Group Ltd., Botswana Daily News reported. Although the bank would book separation costs, it will be normalized by 2021.

* São Tomé and Príncipe's former government contracted more than $70 million in "hidden debt," according to Prime Minister Jorge Bom Jesus, who warned that those responsible would be held to account, Macauhub reported. The IMF warned that the country's public debt was "virtually uncontrolled" and accused the administration of former Prime Minister Patrice Trovoada of hiding numerous debts and public spending equivalent to 3.0% of the small island nation's GDP.

* Mozambique's Banco Comercial e de Investimentos SA opened a new branch in the Zambezia province as part of the government's drive to expand banking services in rural areas, Jornal Noticias wrote. The bank plans to open another branch in the same area in the near future, and BCI director José Furtado highlighted the lender's commitment to offering services in more remote districts, saying 30% of BCI's branches were in rural areas that were largely without banks.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: McKinsey warns of debt crisis in Asia; DBS eyes India's credit card market

Europe: ECB hack warning; Jyske earnings; SocGen to take part in cum-ex trial

Latin America: Chile's economy grows 0.8% in Q2; new chairman at Banco do Nordeste

North America: Texas bank eyes in-state peer buy; CECL may impact bank M&A pricing

Global Insurance: Root's valuation; BA cyber policy; Guy Carpenter wins key role

Erin Tanchico, Henni Abdelghani, Sophie Davies and Helen Popper contributed to this report.

The Daily Dose Middle East and Africa has an editorial deadline of 5 a.m. London time. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.