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Iran vows to prop up banks; Fitch downgrades Oman

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Iran vows to prop up banks; Fitch downgrades Oman

* The Islamic Financial Services Board appointed Central Bank of Kuwait Governor Mohammad Al-Hashel its chairman, effective Jan. 1, 2018. Bangladesh Bank Governor Fazle Kabir was named the organization's deputy chairman. The IFSB also granted membership to eight organizations, including Saudi Arabia's Capital Market Authority, Bank of Uganda, Abu Dhabi Global Market and the West African Development Bank.

MIDDLE EAST AND NORTH AFRICA

* Islamic banks in the Gulf Cooperation Council have weaker stand-alone credit profiles compared to the region's conventional banks, according to Fitch Ratings. The agency added that a high risk appetite and weak asset quality are the main shortfalls of GCC Islamic lenders.

* Iranian President Hassan Rouhani pledged to earmark more than $3 billion from the country's proposed $337 billion 2018 budget to prop up the banking sector, which has been weighed down by bad loans and unauthorized credit lenders, Bloomberg News reported. Rouhani said banks should "withdraw from business dealings" and go back instead to traditional lending services.

* Bank Maskan has notified the Central Bank of Iran that it is ready to begin the second phase of issuing mortgage-backed securities worth 10 trillion rials, more than triple of the first phase of MBS of 3 trillion rials, the Financial Tribune wrote.

* Fitch downgraded Oman's long-term foreign- and local-currency issuer default ratings to BBB- from BBB with a negative outlook, on expectations that the country's budget deficit will hit 12.8% of GDP, one of the largest among sovereigns rated by the agency.

* Saudi Arabia's Capital Market Authority launched a fintech lab to support innovation and development of new products in the country's financial technology sector, Argaam noted.

* Saudi businessman Maan al-Sanea, the chairman of the collapsed Saad Group who was detained for defaulting in his debts, is seeking to repay part of his multibillion-dollar debt that could see his release, insiders told Reuters. Al-Sanea has held investments in several large companies, including a 3.1% stake in HSBC Holdings Plc acquired in 2007.

* S&P Global Ratings affirmed Al Wathba National Insurance Co. PJSC's long-term counterparty credit and insurer financial strength ratings at BBB. The outlook remains negative.

* First Takaful's board of directors has decided to not go ahead with acquiring an unnamed company.

* BMI Research said UAE commercial banks' asset growth will accelerate next year on stronger economic activity, Arabian Business reported. The research firm said banks' assets and loans will grow by 5.6% and 5.9%, respectively, over the course of 2018 as an easing of oil production cuts and improved business confidence will lead to a pickup in economic growth.

* Mashreqbank PSC named Arif Usmani group head of risk management, CPI Financial wrote. Usmani most recently served as Abu Dhabi Islamic Bank PJSC's global head of wholesale banking.

* HSBC UAE said it has refunded customers after a technical glitch has resulted in overcharges on credit card purchases made earlier this month, Arabian Business wrote.

* Abu Dhabi Financial Group aims to raise $200 million from Etihad REIT's stock market listing next year, its CEO Jassim al-Seddiqi told Reuters. The Shariah-compliant real estate investment trust will be listed in either Abu Dhabi or Dubai.

* Nayef Falah al-Hajraf was appointed Kuwait's new finance minister in a cabinet reshuffle. Al-Hajraf, who leads the Capital Markets Authority, replaced Anas Al-Saleh, who become deputy prime minister and state minister for cabinet affairs.

* Kuwait's Asasat International Holding said that it has helped in the establishment of the largest Islamic Bank in Sudan, which will be launched next February, Al Anbaa reported. The bank's capital is 1 billion Sudanese pounds.

* The Tunisian Federation of Insurance Companies executive director Kamel Chibani said the insurance body is weighing plans to create an anti-insurance fraud agency, the Middle East Insurance Review wrote, citing Emerging Maghreb.

* The Central Bank of Sudan instructed banks to freeze the assets of dozens of individuals and companies that have been charged with trading currencies without the central bank's authorization, Radio Dabanga reported.

* The Central Bank of Egypt said banks operating in the country have recorded a net profit of 44.75 billion pounds by September-end, Daily News Egypt wrote. The regulator said the top five banks accounted for 46.67% of the amount.

* Morocco-based Banque Marocaine pour le Commerce et l'Industrie has a new head of private banking in Soraya Mahfoud, who succeeds Meryem Kabbaj, Financial Afrik said.

* Loans offered by banks in Jordan during the first 10 months of 2017 grew 7.3% to 1.677 billion dinars from the same period in 2016, Al Ghad reported.

EAST AND WEST AFRICA

* The Central Bank of Nigeria pledged to give deposit money banks forbearance by reducing their cash reserve ratio for lending to small and medium-sized enterprises, Nigeria's Business Day reported.

* Johnson Asiama, second deputy governor at the Bank of Ghana, dismissed reports that he has resigned, saying he was only on a 10-day leave, Citi Business News wrote.

CENTRAL AND SOUTHERN AFRICA

* Investec Group unit Investec Bank Ltd. has derivative exposures linked to Steinhoff International Holdings NV's share price, which could have a potential impact of up to 3% to the group's posttax operating profit, according to the company.

* Stanbic Bank Zambia Ltd. has announced that Botswana native Leina Gabaraane will take over as managing director of the bank in January 2018, replacing Charles Mudiwa, who was appointed CEO of Stanbic Bank Kenya Ltd., Financial Afrik reported. Gabaraane was most recently head of Stanbic Bank Botswana Ltd.

* Zambia's central bank launched a probe into Barclays Bank Zambia Plc after one of its ATMs dispensed a counterfeit note, Zambian Watchdog wrote.

* Angola's draft 2018 budget forecasts economic growth of 4.9% after the oil-dependent economy failed to meet a target for a 1.7% expansion this year, according to Finance Minister Archer Mangueira, Macauhub reported. The minister said 2016 and 2017 had been "zero in terms of economic growth," adding that the government's priorities for 2018 include paying overdue debts to local suppliers.

* Plans by Angola's Banco de Fomento Angola SA to sell as much as 25% of its share capital in an IPO in 2019 could help Portugal's Banco BPI SA to further reduce its stake in the lender in line with recommendations by the European Central Bank, Jornal de Negócios reported. BPI already handed its control of BFA to Angolan telecoms firm Unitel earlier this year to meet ECB rules on risk exposure to the Angolan economy.

* The Reserve Bank of Zimbabwe set a Dec. 31 deadline for the separation of ZB Financial Holdings Ltd. from Intermarket Holdings Ltd., The Herald wrote.

* Thousands of Zimbabwean nationals who have fled to South Africa amid their country's economic and political crises could see their bank accounts frozen by South African banks pending the issuance of their new Zimbabwean Exemption Permit, CAJ News Africa reported.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: Zurich to buy ANZ's life insurance biz; Taiwan denies forex intervention

Europe: PKO Bank Polski, Bank Pekao deny merger reports; 2 French insurers to merge

Latin America: S&P cuts Venezuela debt ratings; Santander Mexico, bank unit OK merger

North America: US tax reform bill could hit foreign-owned banks; Banc of California sued

North America Insurance: Voya looks to sell annuity assets; commercial P&C rates declined 1.3% in Q3

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.

Sheryl Obejera, Henni Abdelghani, Pádraig Belton, 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.