Tag: Banking Sector
The Covid-19 pandemic is throwing up new challenges to Africa's baking sector, with warnings from the IMF that the pandemic's largest threat to banks being related to their loan portfolios. Similarly, Moody's changed its outlook for the banking systems for Nigeria, Morocco and South Africa to negative from stable. Adesola Adeduntan, Managing Director and CEO of First Bank of Nigeria and Subsidiaries joins CNBC Africa to discuss the future of banking.
As Nigeria’s banking industry responds to impact by the COVID-19 pandemic, Ayokunle Olbunmi, Head of Financial Institutions Ratings at Agusto & Co joins CNBC Africa to assess to what extent current efforts can absorb shocks brought by the pandemic.
In Kenya, the banking sector continues to dominate activity at the Nairobi Securities Exchange with shares worth Ksh775 million transacted, which accounted for 48.27 per cent of the traded value in the week that ended on 30th April 2020. Moreover, the Central Bank of Kenya announced the insurance of a 5-year Ksh50 billion bond for budgetary support in May with the auction date set for Wednesday 6th of May. The market-determined bond will mature in May 2025 with CBK encouraging investors to use treasury mobile direct or internet banking to purchase the bond. Joining CNBC Africa for more is Rodney Omukhulu, Assistant Investments Analyst at Cytonn.
Due to the recent COVID-19 impact, banking as we know it might have to change forever but are banks ready to make these changes, Cherno Gaye, Managing Director of Cogebanque joins CNBC Africa for more.
Moody’s says Nigerian banks’ exposure to the oil and gas industry is substantial, at around 27 percent of total loans as at the end of 2019. Moody’s also stressed that the quality of banks' oil and gas loan portfolios will further deteriorate as a majority of these loans were extended to the upstream and service segments, where borrowers are more sensitive to oil price movements than downstream. Bongo Adi, Senior Lecturer at the Lagos Business School joins CNBC Africa to discuss the impact of the lower oil prices on Nigeria’s oil industry and the banking sector.
As households and businesses in South Africa struggle to cope with the current economic turmoil and uncertainty brought upon by the COVID-19 pandemic, the Prudential Authority (PA) has welcomed the measures taken by banks to support their customers financially.
Moody’s Investors Service say they expect the recent measures by the Bank of Ghana to help mitigate the negative effects of the coronavirus on banks’ asset quality and liquidity. Vice President and Banking Analyst at Moody’s, Christos Theofilou joins CNBC Africa for more.
The banking sector is in the red today, even as the Central Bank of Nigeria announced moves to soften the impact of the coronavirus pandemic on Nigeria’s economy. Ebunoluwa Babarinde, Manager at Financial Derivatives joins CNBC Africa to review the performance of the Lagos bourse amid current macro realities.