* S&P Global Ratings said it believes convergence capital, or funds from nontraditional, third-party sources, will continue to play a key role in the competitive dynamics of the global reinsurance market and bolster capacity, even though the amount of such capital being provided to reinsurers globally fell for the first time in ten years.
* Japanese Prime Minister Shinzo Abe said his country aims to boost private sector investment in Africa by offering enhanced trade insurance, Reuters wrote.
GULF COOPERATION COUNCIL
* Saudi Stock Exchange (Tadawul) has completed the second and final phase of its inclusion on MSCI Inc.'s emerging markets index, CNBC reported. In June 2018, the index provider decided to add Tadawul to the said index in two phases, Argaam noted.
* S&P Global Ratings affirmed the A- long-term insurer financial strength and financial strength ratings of Kuwait-based Al Ahleia Insurance Co. SAKP. The outlook remains negative.
* Kuwait Insurance Co. SAKP said Oman John, assistant CEO of the reinsurance department, has resigned from his position, with his last day in office being Oct. 31.
* Alinma Tokio Marine Co. inked a nonexclusive insurance agency agreement with Almaros for Insurance Services Co, under which Almaros will market and sell Alinma Tokio's commercial and individual insurance policies in Saudi Arabia, Argaam reported.
REST OF MIDDLE EAST AND NORTH AFRICA
* The Bank of Israel said it will not raise its key interest rate, which it kept unchanged at 0.25%, for an "extended period" amid a downward shift in the inflation environment and a strengthening currency. The central bank added that if necessary, it will take "additional steps toward making monetary policy even more accommodative" to spur inflation toward the midpoint of its target range and to support economic activity. The steps would likely involve intervention in the foreign exchange market and cuts that could lead to negative rates, Reuters noted.
* IDB Development has received a binding offer to acquire up to 26% of shares in Clal Insurance Enterprises Holdings Ltd. on better terms from four underwriters after it rejected a lower initial offer from the same group, Globes reported. IDB Development currently owns 20.3% of Clal Insurance, and is exposed to swap deals for 24% more of the company's shares.
* The Lebanese central bank's move to consolidate the banking sector is a right step and will benefit bank shareholders and promote healthy competition among lenders, Banker Middle East reported, citing a white paper by KPMG.
* Egypt's Financial Regulatory Authority will extend the deadline for takaful firms to comply with new rules aimed at improving transparency and efficiency in the Islamic insurance segment by six months until Feb. 24, 2020, on condition that companies submit a plan of action by Sept. 30, 2019, Middle East Insurance Review reported.
* Egypt's Financial Regulatory Authority has approved the inclusion of insurers Tharwa and Axa Property Insurance in the Compulsory Motor Insurance Group, Middle East Insurance Review wrote.
* The Egyptian finance ministry is reconsidering the issuance of Egyptian pound-denominated bonds, which could take place by early 2020 depending on market conditions, Mubasher reported, citing Enterprise.
* Capital Intelligence Ratings affirmed Société Générale Marocaine de Banques long- and short-term foreign-currency ratings at BBB-/A3 and assigned the Moroccan lender a bank stand-alone rating of "bb+", with stable outlooks on the long-term foreign-currency and bank stand-alone ratings.
* The U.S. will grant Tunisia $335 million in financial aid over five years to support the North African country's transition to democracy, Reuters reported.
* Hichem Rebai will replace Ahmed Rjiba as CEO of Banque de l'Habitat SAL, Il Boursa reported. Rjiba is leaving the lender to take the reins of Arab Tunisian Bank.
EAST AND WEST AFRICA
* KCB Group PLC said it has received acceptances amounting to 77.62% of National Bank of Kenya Ltd.'s shares in relation to its takeover offer for the lender, adding that it has waived the conditions related to the acceptances and the requisite shareholder approval for the delisting of NBK from the Nairobi Securities Exchange. KCB said it will seek the requisite corporate and regulatory approvals for the delisting at the appropriate time.
* Togo-based Ecobank Transnational Inc. said the sale of the roughly 14.1% stake held by U.S.-based International Finance Corp. and funds managed by its unit IFC Asset Management Co. to Dutch investment firm Arise BV has been completed.
* Nigerian lenders Zenith Bank PLC and Guaranty Trust Bank PLC have indicated that they could potentially expand their operations by acquiring other financial firms, Business Post wrote.
* Nigeria's central bank, the Nigeria Inter-Bank Settlement System and the Bankers' Committee will launch an initiative that will allow banks to recover loans from defaulters' deposit accounts from any local bank or financial institution, Business Post reported, citing central bank Deputy Governor Aishah Ahmad.
* Babatunde Fowler, chairman of Nigeria's Federal Inland Revenue Service, said Nigerian banks will begin charging value added tax on local and foreign online transactions from January 2020, The Punch reported.
* Ghana-based UnikLife Microfinance has agreed with Eric Nana Nipah, the receiver for collapsed microfinance firms, to allow itself to be declared insolvent to kick off the payment of depositors' funds, Citi Business News wrote. UnikLife was among several microfinance firms declared insolvent by the Bank of Ghana and had their operating licenses revoked.
* The IMF's executive board approved a new three-year arrangement under its extended credit facility for Mali for a loan of roughly $191.9 million, as well as the first disbursement under the arrangement of about $27.4 million.
CENTRAL AND SOUTHERN AFRICA
* A World Bank mission visited Central Africa to explore how the international financial institution might assist in the setting up of a Central African financial market, involving the merger of the region’s stock exchanges, according to Financial Afrik.
* Former Old Mutual Ltd. CEO Peter Moyo has launched another high court application against the South African insurer, saying the company violated the constitution by firing him again while it was still awaiting judgment on the legality of its first dismissal of him, South Africa's Business Day wrote.
* South Africa's Financial Sector Conduct Authority warned the public against dealing with African Wealth Shares, saying it found that the company is not authorized to provide financial advice and intermediary services. The regulator's statement came after it was informed that African Wealth Shares has been offering investments with return on investment of 50% or more within 30 days.
* Mozambique's central bank banned Paulo Alexandre Duarte de Sousa, vice chairman and chairman of the executive board at Banco Comercial e de Investimentos SA, from working in any social or management positions in credit and financial institutions for three years, O País wrote. He is accused of conflict of interests during the decision process of evaluating the acquisition proposal of Interbancos SA by the Sociedade Interbancária de Moçambique. He could not be involved in negotiations as he was not a shareholder or manager of the companies. He will also have to pay a fine of 200,000 meticais.
* Zimbabwe-based First Capital Bank Ltd. is requesting approval from the country's labor court to lay off 120 employees, Bloomberg News reported, citing Peter Mutasa, president of the Zimbabwe Bank Allied Workers' Union. Mutasa said the union opposes the application as they believe the bank did not follow proper procedures.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: China Construction Bank H1 profit up 4.87% YOY; Shinhan Card issues ESG bonds
Europe: Deutsche Börse offices raided; RBS suffers another IT glitch; all eyes on Italy
Latin America: Brazil's BMG considering IPO; Scotiabank Chile's H1 profit up 111%
North America: 2 US banks to add Japan-focused staff; Wells Fargo fined; Nebraska CUs in deal
Global Insurance: Dorian approaches Puerto Rico; insurtech funding; Purdue Pharma settlement offer
Erin Tanchico, Henni Abdelghani, Pádraig Belton and Mariana Aldano 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.
