* The IMF's executive board officially selected Kristalina Georgieva as its new managing director. The Bulgarian national will start her five-year term on Oct. 1, replacing Christine Lagarde, who will take over as president of the European Central Bank on Nov. 1.
GULF COOPERATION COUNCIL
* Samba Financial Group
* Capital Intelligence Ratings affirmed the A long-term foreign-currency rating of Arab National Bank and adjusted its short-term foreign-currency rating to A1 from A2. The agency also assigned the Saudi Arabian lender bank stand-alone and core financial strength ratings of "bbb+" and an extraordinary support level of High. The outlook on the long-term and bank stand-alone ratings is stable.
* Fitch Ratings warned that United Arab Emirates banks, which have yet to fully recover from the Dubai's real estate crisis in 2010, are increasingly at risk of deteriorating asset quality as a result of a weakening domestic property sector. The rating agency also said that a significant chunk of the $23 billion loans that banks had extended to Dubai government-related entities due to mature by 2021-end may need to be restructured again.
* National Bank of Fujairah PJSC issued $350 million in Additional Tier 1 bonds, marking its first offering in the international capital market. The perpetual, non-callable bonds with a 5.875% coupon were more than 4x oversubscribed, attracting orders of more than $1.5 billion.
* Emirates NBD Bank PJSC yesterday launched E20., the first digital business bank in the UAE. The bank aims to open E20. to business customers by the first quarter of 2020, after completing the beta phase.
* Abu Dhabi Islamic Bank PJSC appointed Jose Joseph chief risk officer. He joined ADIB from Oman-based Bank Dhofar SAOG, where he held the same role and as deputy general manager.
* CI Ratings upgraded to A- from BBB+ the long-term foreign-currency rating of National Bank of Umm Al-Qaiwain (PSC)
* UAE Economy Minister and Insurance Authority Chairman Sultan bin Saeed al-Mansouri issued two regulations to govern the marketing of insurance policies through banks, with the second one pertaining to the amendment of rules regulating the insurance sector, where employees should undergo 30 hours in training before starting work, Mubasher reported.
* Kumaresh Chithravelu has resigned as CFO of KAMCO Investment Company KSCP, effective Sept. 25, citing personal reasons.
REST OF MIDDLE EAST AND NORTH AFRICA
* Israeli President Reuven Rivlin said yesterday that he would ask incumbent Prime Minister Benjamin Netanyahu to form the country's next government despite his party trailing its main rival in the inconclusive Sept. 17 parliamentary election. The final, official election results announced Sept. 24 showed that the Blue and White Party won 33 seats, ahead of Likud Party's 32 seats.
* Union National Bank - Egypt (SAE) aims to increase its local market share to 3% by 2023-end from 1.1% at present, by focusing on vital sectors such as industry and renewable energy, managing director and CEO Ihab el-Sewerky told Daily News Egypt. The lender also plans to widen its technological services in the next five years.
EAST AND WEST AFRICA
* The Kenyan parliament yesterday junked a request from the finance ministry to repeal the law capping commercial lending rates, which the ministry says has cut private-sector credit growth in the country, Reuters reported, citing lawmaker Jude Njomo. The government introduced the law in 2016, capping the rates that lenders can charge clients at four percentage points above the central bank's benchmark, currently at 9%.
* The board of directors of the African Development Bank has approved a €22.5 million credit line, including €15 million from the entity itself and €7.5 million from the Africa Growing Together Fund, to support Senegal's Banque Nationale pour le Développement Economique SA, Agence Ecofin reported. The Africa Growing Together Fund is a joint initiative of the African Development Bank and the People's Bank of China.
* Only one Nigerian insurer has so far complied with the new capital requirements set by the National Insurance Commission, The Punch wrote, citing a spokesperson for the regulator. The commission is currently reviewing the recapitalization plan of two companies, while three more are yet to submit theirs.
* Nine listed banks on the Nigerian bourse are trimming their stock of nonperforming loans to meet the 5% limit prescribed by the central bank, according to The Punch. Two of those banks, Ecobank Nigeria Ltd. and FBN Holdings PLC, have lowered their NPL ratios to 14.5% as on June-end.
* Ghana's central bank will start selling foreign exchange beginning Oct. 1, citing improved liquidity in the market, Citi Business News reported. The Bank of Ghana aims to sell up to $50 million and bids must be of a maximum of 10% of the auction target, while authorized dealer-banks would only be allowed to submit three bids.
CENTRAL AND SOUTHERN AFRICA
* A South African court is set to decide today on the legality of a planned strike by employee unions in the banking sector in protest of job cuts in the industry, Business Day reported. The planned strike, slated for tomorrow, was questioned lobby group Business Unity SA, citing the Labour Relations Act's section 77, which deals with protected protest action.
* For the third time, Peter Moyo was barred from returning as CEO of Old Mutual Ltd. having been refused entry to the South African insurer's premises again, according to Business Report. Meanwhile, Moyo, whom the insurer fired in June, told CNBC Africa that he intends to pursue court action to have Old Mutual's nonexecutive directors declared delinquent. The move forms part of Moyo's Plan B, which also includes seeking compensation for damages to his reputation.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: Japan Exchange nears merger; Indian bank loans fall by 900B rupees
Europe: UK court loss; Santander sees €1.5B charge; HSBC fine junked
Latin America: Argentina partly eases currency controls; Brazil central bank sees higher Q3 GDP
North America: Facebook delays Libra; CU deal called off; House may OK cannabis banking bill
Global Insurance: Nationwide E&S goal; 5th Atlantic hurricane; Blue Cross/Cambia merger on hold
Erin Tanchico, Henni Abdelghani, Sophie Davies and Mariana Aldano contributed to this report.
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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.
