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SSA news through Dec. 7


Banking Essentials Newsletter: January 11th Edition


Banking Essentials Newsletter December 21st Edition


The Road to Basel IV: Navigating the challenge facing European banks


Basel Framework- Utilizing data to analyze the capital position of European banks.

SSA news through Dec. 7

* The revised Markets in Financial Instruments Directive coming into force in January 2018 is expected to hit corporate and investment banking revenues in Europe, the Middle East and Africa, but the impact will be manageable, according to Eric Li, research director at Coalition.

* The global sukuk market is set to grow further in 2018 due to a number of factors including rising sovereign issuance and growing demand from retail banks, according to Moody's. Niger, Kenya, Ghana, Morocco, Tunisia and Algeria all plan to take advantage of the asset-based nature of sukuk financing to fund infrastructure development.


* The World Bank lowered Kenya's 2017 economic growth outlook to 4.9% from 5.5%, noting that economic activity is likely to have declined to its weakest level in five years. The Financial Times and Bloomberg News covered.

* Meanwhile, the Kenyan central bank is set to hold its next monetary policy committee meeting Jan. 22, 2018. The regulator maintained its benchmark lending rate at 10.0% at its last meeting in November, Reuters noted.

* The Nairobi Securities Exchange signed a memorandum of understanding with Nasdaq Dubai to facilitate the establishment of a sukuk sector in Kenya, CPI Financial wrote.


* Access Bank Plc CEO Herbert Wigwe said the Nigerian lender aims to expand its trade payment and settlement service in West Africa during the next five years, Reuters reported. Wigwe also confirmed that Access Bank plans to inject $50 million into unit Access Bank (Ghana) Plc to meet new capital requirements in Ghana. The unit intends to launch a 150 million cedi bond program and a 300 million cedi rights issue to meet the regulations, which require banks in Ghana to hold at least 400 million cedi of capital, Graphic Online reported.

* The Bank of Ghana instructed 32 banks to submit plans aimed at reducing their huge stock of nonperforming loans, Joy Business reported.

* Guaranty Trust Bank Ghana Ltd. completed the full integration of Ria Money Transfer's direct to bank account service, allowing senders to quickly and directly transfer funds to beneficiaries of GTBank accounts, B&FT Online reported.

* The IMF's Executive Board approved a three-year arrangement under the extended credit facility with Mauritania for about $163.9 million to support the country's economic and financial reform program, immediately making available roughly $23.4 million to it.

* Edoh Kossi Amenouve, director general of the Abidjan, Ivory Coast-based BRVM stock market, said the exchange will launch a third compartment devoted to small business listings on Dec. 19, Financial Afrik reported.


* Former U.K. Labour cabinet minister Peter Hain has called on authorities to open a probe into all bank accounts held in London by any South African state-owned firm, including South African Airways, the Financial Times reported. His demand comes amid heightened global scrutiny of the politically connected Gupta family, which is accused of using ties with South African President Jacob Zuma to influence state affairs.

* Nedbank Ltd. said it would not hire McKinsey for any future projects until the bank has completed and assessed its external reviews of the global management consultancy firm's work in South Africa, according to the Financial Times. McKinsey is embroiled in a corruption scandal involving the controversial Gupta family.

* Barclays Plc's total shareholding in Barclays Africa Group Ltd. will fall to about 14.9% for regulatory reporting purposes after it transferred a 7.0% stake in the South African lender to two financial institutions, which will then transfer the stake to South Africa's Public Investment Corp. once all regulatory approvals have been received.

* The North Gauteng High Court is reviewing a report by South Africa's anti-graft watchdog into the controversial apartheid-era bailout money received by Bankorp Ltd., which was acquired by Barclays Africa Group unit Absa Bank Ltd. in 1992, to determine if the money is still outstanding to the central bank, reported.

* Standard Bank Group Ltd. appointed its Zambian unit CEO, Charles Mudiwa, to head its Kenyan operations, Business Daily Africa reported.

* Fairfax Financial Holdings Ltd. South Africa-based unit Bryte Insurance Co. Ltd. acquired specialist insurer Holmes Underwriting Agency.

* The board of African Phoenix Investments Ltd. said CEO Enos Banda's term finished at November-end, although he will remain as a nonexecutive director.

* The Council of the European Union included Namibia in a blacklist of tax havens and territories deemed uncooperative on tax matters.

* The Bank of Namibia decided to keep its repo rate at 6.75%, it said, adding that it was an appropriate level for supporting economic growth.

* In a general assembly, shareholders of Moza Banco SA approved a 3.5 billion meticais capital increase, O País reported.

* Mozambique has observed an increase of 66% in NPLs between 2015 and 2016 to 17.6 billion meticais from 10.6 billion meticais, Macauhub wrote, citing data from consultancy firm KPMG and the Mozambican banking association.

* Angola's central bank has raised the benchmark interest rate from 16% to 18% in an attempt to curb the high levels of accumulated inflation, Jornal de Angola wrote.

* Angola is expected to address a total of 225 billion kwanzas of bad loans, or three quarters of the country's bad loans, until 2017-end, according to Recredit, the company created to deal with the country's nonperforming assets, Macauhub wrote.

* Zambia National Commercial Bank Plc, or Zanaco, has launched its mobile banking application as part of efforts to become fully digitalized by 2020, according to Lusaka Times.

* African private equity group AFIG brought on board two Deloitte Senegal senior managers, Thiaba Camara Sy as deputy general manager and Olga Lawson to head its investment team, Financial Afrik reported.

* New Zimbabwean President Emmerson Mnangagwa announced his new cabinet members, following a military coup that forced an end to the decade long rule of Robert Mugabe, Bloomberg News reported, citing Cabinet Chief Secretary Misheck Sibanda's emailed statement.

* The IMF's Executive Board completed the second review under the extended credit facility arrangement for Madagascar, enabling the disbursement of about $44.5 million. This brings the total disbursements under the arrangement to approximately $174.1 million.

Coalition is owned by CRISIL. S&P Global Market Intelligence and CRISIL are owned by S&P Global Inc.

Pádraig Belton and Mariana Aldano contributed to this report.