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Banking

Russian Banks Come Under Pressure as Kremlin Tweaks Taxes to Support Pandemic-Hit Economy

The Russian government introduced sweeping changes to the tax regime in order to support businesses and SMEs, while seeking to secure additional revenue streams elsewhere. But while the country’s ample FX reserves should see it fare better than many EM peers, its banking sector – subject to a massive and prolonged consolidation over the past five years – is also feeling the squeeze.

27 Mar 2020

Bips & Pieces Russia & CIS Banking

UAE Bank to See Asset Quality Weaken – Fitch Ratings

The impact of the coronavirus is being felt by countries and sectors worldwide, but the UAE is particularly sensitive as key sectors like oil & gas and logistics feel the disruption more severely. For the country’s banking sector, the pandemic looks set to place additional pressure on banks’ credit profiles by reducing asset quality, according to a note from Fitch Ratings.

24 Mar 2020

Saudi Banks’ Margins Squeezed by Fed Cut – Fitch

The US Fed’s recent decision to cut interest rates by a further 50bp is placing additional pressure on the margins of Saudi Arabia’s banks, according to a recent report from Fitch Ratings. Following the lead of the Fed, the Saudi Arabian Monetary Authority (SAMA) cut its repo rate on Monday by 50bp, bringing rates in the Kingdom to an all time low of 1%. But the Kingdom’s banks will feel the…

20 Mar 2020

Debt Capital Markets Are Crucial to Success of Saudi Vision 2030, but Some Bankers Say it's Underutilised

Vision 2030, Saudi Arabia’s ambitious plan to transform the economy and diversify away from oil production, has seen the country develop the largest project pipeline in the region. But the government’s apparent reluctance to raise funds through the debt capital markets risks undermining Vision 2030, according senior investment bankers based in the region.

18 Mar 2020

Do Central Banks Need New Guidelines Around How They Communicate?

The past 20 years has seen central banks assume far more prominence in day-to-day economic discourse and decision-making than many are likely to appreciate, and alongside that huge transformation came an equally significant shift in how these emboldened titans communicate with the market. But when it comes to managing the market’s expectations, arguably the fundamental role central banks play…

17 Mar 2020

Moody's Follows Oman Sovereign Rating Move with Corporate, Bank Downgrades

Seven lenders and eight non-financial companies saw their ratings cut by one notch, a week after Moody's trimmed Oman's sovereign rating.

13 Mar 2020

Turkish Banking Sector Outlook Improving - ING

Following strong performance last year, many in the Turkish banking sector are looking ahead at 2020 with optimism, according to Oleksiy Soroka, Senior High Yield Credit Strategist at ING.

12 Mar 2020

Yes Bank Taken Over by RBI in Dramatic Move, Highlighting Continued Banking Sector Woes in India

Yes Bank Ltd, India’s fourth-largest privately-owned lender, had its board superseded by the Reserve Bank of India this week, an extraordinary move that sent the company’s stocks and bonds crashing and a further sign of the country’s continued difficulty resolving poor bank balance sheets. If the RBI gets the resolution right, however, it could catalyse a swift reversal in sentiment that has long…

6 Mar 2020

GCC Non-Performing Loans May Deteriorate on Weaker Activity in 2020

GCC banks’ asset quality is likely to stay under pressure as asset growth is showing signs of peaking, according to Fitch Solutions.

28 Feb 2020

Sberbank Net 2019 Profits Surge Following Denizbank Sale

Russia’s biggest lender posted a 20% y-o-y jump in profits for 4Q2019, as it prepares for the looming change of the controlling shareholder.

27 Feb 2020

Conducive Macro Backdrop Bolstered Rwanda’s Financial Sector in 2019 – Central Bank

Rwanda’s financial sector enjoyed healthy growth throughout 2019, whilst key metrics indicate that the banks remain well capitalised and non-performing loans (NPLs) are continuing to fall, according to a recent note from the Financial Stability Committee at the National Bank of Rwanda.

21 Feb 2020

MENA Borrowers Weigh Costs and Benefits of Debut DCM Deals as Appetite for Funding Diversification Grows

CFOs and Treasurers from across the region are looking at ways to diversify their funding base and reduce their dependence on the region’s deep-pocketed lenders, with the debt capital markets – which has grown leaps and bounds over the past decade – looking increasingly likely to be the dominant means of doing so. But how to shift internal cultures around disclosure, engage new investors, and…

20 Feb 2020

Turkey Delays Structural Reforms in Favour of Credit Fuelled Recovery – Chatham House

Despite a strong recovery since the economic crisis of 2018, Turkey is not out of the woods yet. Binging on cheap credit may have pulled the economy out of recession for now, stimulating key sectors and driving consumption, but it leaves the lira vulnerable, according to a recent report by Fadi Hakura, Turkey Specialist and Manager of the Turkey Project at Chatham House.

20 Feb 2020

Standard Chartered Kenya Launches Mobile Bond Trading Service

Standard Chartered Kenya has launched a bond trading service via its app, SC Mobile App, allowing customers to trade local currency government bonds through their mobile devices.

19 Feb 2020

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