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Banking

Turkey-Euroclear Deal Could be Game Changer for Local Market Liquidity, ING Says

A deal that will see Turkish lira-denominated government bonds become Euroclearable in July could be a game changer for the country’s debt markets, analysts at ING believe.

19 Jun 2020

Bips & Pieces CEE & Turkey Policy & Government

External Financing Risks to Turkish Banking Sector ‘Manageable’ - ING

As Turkey braces for the economic impact of the COVID-19 crisis, the banking sector looks likely to be called to play a larger role in facilitating the government’s stimulus plans. But despite a recent spike in NPLs and foreign exchange pressures, the risks to the country’s banks appear manageable, according to a recent report by Oleksiy Soroka, Senior High Yield Credit Strategist at ING.

22 May 2020

Coronavirus Prompts UK Market Watchdog to Extend LIBOR Replacement Deadline

The UK Financial Conduct Authority (FCA) has extended the deadline for ending the use of the London Interbank Offered Rate (LIBOR) for new loans until the end of March next year in a bid to give borrowers and banks more breathing room as the market migrates to the Sterling Overnight Index Average (SONIA).

30 Apr 2020

COVID-19 Poses Severe Threat to South Africa’s Banking Sector - Fitch

The pandemic poses ‘significant downside risks’ to South African banks, according to Fitch Ratings, as asset quality and earnings face downward pressure.

30 Apr 2020

Land Bank Potentially Triggers Default

South African government-owned Land Bank may have triggered a default under the terms of its ZAR30bn domestic medium-term note (DMTN) programme after failing to make a payment on a revolving credit facility (RCF), despite previously reporting a strong liquidity profile.

22 Apr 2020

Kenya’s Banking Sector Poised for More Consolidation – Cytonn Investments

With 38 lenders catering to just over 52 million people, and despite a series of mergers, the Kenyan banking sector appears overbanked. Further consolidation is expected in the years to come, which could result in a number of larger, better-capitalised, more stable banks, according to Cytonn Investments.

22 Apr 2020

Pandemic to Squeeze Margins at GCC Banks – S&P

The COVID-19 pandemic combined with the subsequent slump in oil prices is a particularly dangerous combination for GCC economies given the region’s exposure to commodity prices. According to a report from S&P, the region’s banks face an earnings shock, with a notable slowdown in credit growth and higher risk premiums – although other key metrics remain strong.

14 Apr 2020

Sovcombank Launches Debt Buyback, Signalling Broader Shift to Liability Management as Sector Outlook Dims

One of Russia’s largest lenders joins a growing list of banks carrying out liability management exercises amid growing pressure on the sector from the COVID-19 pandemic, as Fitch Ratings shifts sector outlook to negative.

8 Apr 2020

Kenyan Banking Sector Recovery Cut Short as Pandemic Crosses into the Country

Encouraging full-year 2019 results published by Kenyan lenders pointed to a build up of momentum, but the spread of COVID-19 is forcing the government to introduce emergency measures and banks to slash revenue targets for 2020.

7 Apr 2020

Central Bank of Brazil Prohibits Dividends, Pay Rises for Banks

The National Monetary Council (CMN) of the Central Bank of Brazil has temporarily prohibited pay rises for financial institutions in the country until September 2020. The ban is aimed at ensuring that funds are used to maintain credit and to absorb any future losses that may occur.

6 Apr 2020

The End of LIBOR Could Spawn a Heterogeneous Rate Environment, Creating Uncertainty for Banks and CFOs

Despite the considerable momentum in transitioning towards new rates to replace LIBOR ahead of the 2021 phaseout, a forward-looking version of today’s risk-free rates remains elusive, raising the spectre that CFOs and treasurers will have to grapple with a heterogenous and complex bank borrowing environment.

3 Apr 2020

Akbank Renews USD510mn Syndicated Loan Despite Market Volatility

Akbank has successfully renewed a USD510mn syndicated loan, marking a rare transaction amidst a volatile market backdrop. With a one-year maturity, the loan priced at LIBOR+2.25%, lower than the previous cost of borrowing on the facility in March last year.

3 Apr 2020

Loans in Brazil Creep Up as Lockdowns Force Companies to Tap into Credit Markets

Non-earmarked loans increased 1.4% month-on-month in Brazil, while earmarked loans dropped 2.6% in the same period, central bank figures show, with overall loan delinquencies stable at 3% in seasonally adjusted terms.

1 Apr 2020

China’s Banking System Part of the Problem, Not a Solution, to Current Crisis – Rhodium Group

As the epicentre of the coronavirus outbreak, China was the first to suffer its devastating impact as the country went into lockdown and its economy ground to a halt. But will China be able to launch a sustained bounceback, as it did after the 2008 financial crisis? According to Logan Wright, Director and Daniel Hosen, Partner at Rhodium Group, China no longer has the option of launching a…

31 Mar 2020

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