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2 UAE banks in M&A talks; Zambia cuts rates; Mozambique eyes Moza stake sale

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2 UAE banks in M&A talks; Zambia cuts rates; Mozambique eyes Moza stake sale

MIDDLE EAST AND NORTH AFRICA

* Bank of Sharjah PJSC and Invest Bank PSC have been in on-off discussions about a potential merger since last year, insiders told Reuters. A tie-up of the two small lenders, which is reportedly driven by Sharjah authorities, will create a firm with approximately 50.6 billion United Arab Emirates dirhams of assets.

* UAE Banks Federation Chairman Abdulaziz al-Ghurair said local banks' loan growth could recover to roughly 3% to 4% next year after a flat growth this year, Reuters reported. Al-Ghurair, who also serves as CEO of Mashreqbank PSC, also said the lender has no plans to exit Qatar and is there "for the long haul." As for a plan to implement value-added tax in the insurance and banking sectors, he said the plan should be delayed as the sectors are not yet ready for it, Al Bayan reported.

* Central Bank of the UAE Governor Mubarak Rashed Khamis al-Mansoori said the regulator will set up a cybersecurity department for financial institutions, in coordination with the UAE National Electronic Security Authority, Thomson Reuters' Zawya reported.

* Separately, Mansoori said a request by the central bank for financial firms to hand over details of 19 Saudi nationals was just part of its data collection and "nothing more," Reuters wrote. The request followed the arrests conducted by Saudi officials as part of the government's sweeping anti-corruption crackdown.

* The asset value of 48 banks operating in the United Arab Emirates reached about 2.3 trillion dirhams, or $720 billion, by September-end, the highest among the GCC states and across the Middle East, according to state news agency WAM. Saudi Arabia's banking sector came in second with an asset value of $609 billion.

* The Abu Dhabi Securities Exchange granted Al Ramz Corp. Investment and Development PJSC unit Al Ramz Capital a technical short-selling license, WAM wrote.

* The average solvency ratio of Saudi banks reached 19% in the third quarter, Argaam reported.

* The Saudi Arabian Monetary Authority instructed insurers to settle payments related to insurance and reinsurance services via online channels beginning next year, Argaam wrote.

* Alinma Bank Managing Director and CEO Abdulmohsen Al-Fares told Argaam that the lender plans to boost its market share of loans and deposits as it aims to take advantage of the opportunities presented by the Saudi Arabian market. He added that the implementation of VAT will not have a direct impact on local banks' products and services.

* Ahli United Bank KSCP has called for a shareholders meeting Dec. 20 to approve a plan to establish a wholly owned unit in Bahrain, Reuters noted. The bank will also seek approval to transfer its group of assets and liabilities, either conventional or Islamic compliant, to the new unit, and to convert its current retail license to a conventional wholesale license. The bank is undergoing a legal reorganization to manage its various local and international entities.

* Bahrain-based GFH Financial Group BSC confirmed that it intends to cross-list its shares on the Saudi Stock Exchange and that it is in discussions on the process and requirements for cross-listing with Tadawul and the Saudi Capital Markets Authority. The group added that it is in the process of seeking the Central Bank of Bahrain's prior approval to cross-list.

* Kuwait Finance House KSCP signed an initial deal to sell a 19.967% stake in Gulf Investment House KSCP, equivalent to 32.79 million shares, to Sanad Holding Company for 23 fils apiece, Reuters noted. Separately, Gulf Investment House said it signed a memorandum of understanding with Sanad Holding to settle a 34.6 million dinar loan to improve its financial position.

* Lebanese Prime Minister Saad al-Hariri has suspended his resignation on the request of President Michel Aoun, easing a crisis that caused tension throughout the Middle East, Reuters reported.

* Egypt expects to receive the next tranche of its three-year, $12 billion IMF loan next month, Reuters reported, citing Finance Minister Amr El-Garhy. The $2 billion tranche will bring the country's total disbursements under the loan program to roughly $6 billion.

* Egypt-based Banque Misr - SAE is planning to borrow between $500 million and $700 million from a foreign bank in order to grow its loan portfolio, Agence Ecofin reported.

EAST AND WEST AFRICA

* Banks that took part in Kenya Airways' debt restructuring plan may have lost 8% of their annualized net profit as calculated from their half-year results, with National Bank of Kenya Ltd. taking the hardest hit, according to Moody's, Business Daily Africa wrote.

* The Bank of Ghana said it will offer incentives to lenders that grant loans for environment-friendly projects, Citi Business News wrote. Some of the incentives include lower lending rates.

* Ghanaian Finance Minister Ken Ofori-Atta floated the idea of a potential merger of National Investment Bank Ltd. and Agricultural Development Bank Ltd. to create the National Development Bank as part of the government's economic reform plan, Graphic Online reported.

* Sanlam Emerging Markets has acquired Uganda-based Lion Assurance Co. Ltd. for $6.5 million, International Adviser wrote. As part of the deal, Lion Assurance, which is owned by Botswana-based Trans Industry Proprietary, will be merged with Sanlam General Insurance Uganda.

* German reinsurer Hannover Re is going to open its second branch in Africa – in Abidjan, the capital of Ivory Coast, Financial Afrik reported. It opened its first African branch in Johannesburg, South Africa.

CENTRAL AND SOUTHERN AFRICA

* The Bank of Zambia lowered its policy rate to 10.25% from 11% and slashed the statutory reserve ratio to 8% from 9.5%, citing the continued decline in inflation and expectations that it will remain well within the medium-term target range of 6% to 8% over the next eight quarters. Meanwhile, central bank Governor Denny Kalyalya said the delay in reaching an agreement with the IMF for a financial aid program was putting pressure on the kwacha, Reuters wrote.

* The pension fund of Mozambique's central bank wants to sell 20% to 40% of Moza Banco SA after it injects further capital into the lender, insiders told Bloomberg News. While talks are still at an early stage and may not result in a deal, the potential sale could come after Moza Banco's planned 3.5 billion Mozambican meticais rights issue in December, in which the pension fund will be the sole participant, the sources added.

* Former Zimbabwean Vice President Emmerson Mnangagwa will be sworn in as president tomorrow following the resignation of President Robert Mugabe.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: MetLife open to resume ANZ deal talks; Malaysian crypto regulation moves forward

Europe: BPCE out of G-SIB list; HSBC unit fined in Hong Kong; Equita SIM prices IPO

Latin America: Banco Finansur lands buyer; Argentina central bank holds rate

North America: Citibank fined over student loan failures; Wells Fargo sued over 401(k) plan

North America Insurance: Minuteman members get more time to select plan; Harvey loss estimated at $15.9B

Sheryl Obejera, Henni Abdelghani, Sophie Davies 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.