Banking

JOHANNESBURG (Capital Markets in Africa) – Absa Group Ltd. has overhauled the executive management of its corporate and investment banking unit as part of an ongoing group-wide revamp to draw more revenue from operations in Africa. The team of eight, which includes former joint-chief executive officers of the division, Mike Harvey and Temi Ofong, now have a mandate to drive business across the entire African continent, Absa CIB CEO Charles Russon said in an interview in Johannesburg. The…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s central bank wants to see sustainably lower inflation to ensure cheaper borrowing costs in the economy, Governor Lesetja Kganyago said. “We have indicated that a consistently lower rate in the near term, at the midpoint of our target band — 4.5 percent — would lower long-term interest rates and be more supportive of balance in the economy,” Kganyago said Wednesday in a speech in Stellenbosch, near Cape Town. The…

LONDON (Capital Markets in Africa): The Bank of England doesn’t need to rush to raise interest rates until the uncertainty of Brexit lifts, according to policy maker Michael Saunders. In a speech in London Wednesday, Saunders, considered one of the most hawkish members of the Monetary Policy Committee, said that tame inflation and a slowdown in growth meant officials could adopt a wait-and-see approach as Brexit plays out. BOE officials voted unanimously last month to hold…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s ruling party has taken a decision to nationalize the central bank and it will be implemented, President Cyril Ramaphosa said. “We have got to go through processes,” Ramaphosa told parliament in Cape Town on Thursday. “There is no hidden agenda.” Ramaphosa’s comments come a day after he was scheduled to meet with Reserve Bank Governor Lesetja Kganyago in Cape Town. Kganyago on Wednesday emphasized the importance of central bank independence in…

LAGOS (Capital Markets in Africa) -Nigerian President Muhammadu Buhari has come under pressure from his political allies to replace central bank Governor Godwin Emefiele when his term ends in June, according to people familiar with the matter. While Buhari has yet to make a final decision, he is mulling replacing Emefiele, a southerner, with a northerner, according to two people, who asked not to be identified as the matter is private. Emefiele would want a second term if he…

LONDON (Capital Markets in Africa) – The Bank of England is putting in place more buffers for the banking system as the prospect of a messy Brexit continues to hit companies and consumers. The new liquidity facility will allow U.K. lenders to access euro funding around the March 29 exit date from the European Union. Last week, the central bank said it would increase the frequency of its regular liquidity operations to weekly from monthly in a…

MONROVIA (Capital Markets in Africa) – A review into the alleged disappearance of almost $100 million in cash that Liberia’s government said was printed abroad and went missing after arriving at the port found no evidence to support the charge. The government of President George Weah ordered a probe in September into the disappearance of 15.5 billion Liberian dollar ($96 million) in banknotes between 2016 and 2018 and banned some current and former central bank officials from leaving the country while…