South Africa Reserve Bank consults BoT for selling Barclays Plc shares

SARB acting Deputy Head for Banking Supervision, Neil Maree said the consultations will likely end in 2-3 years because of the sensitivity of the matter as people in 11 African countries have a stake in the bank hence the need for proper regulations.

South Africa Reserve Bank consults BoT for selling Barclays Plc shares

SARB acting Deputy Head for Banking Supervision, Neil Maree said the consultations will likely end in 2-3 years because of the sensitivity of the matter as people in 11 African countries have a stake in the bank hence the need for proper regulations.

29 May 2017 Monday 12:33
South Africa Reserve Bank consults BoT for selling Barclays Plc shares

The South African Reserve Bank (SARB) is in consultation with Bank of Tanzania (BoT) and other Central Banks where Barclays bank Plc has operations to ensure that the majority shares selling goes smoothly.  

SARB acting Deputy Head for Banking Supervision, Neil Maree said the consultations will likely end in 2-3 years because of the sensitivity of the matter as people in 11 African countries have a stake in the bank hence the need for proper regulations.

Maree said they had so for held meetings with Bank of Tanzania officials regarding Barclays Plc divestiture since the London based bank announced its intention to sell its 50 per cent stake in its Africa franchise, which trades as Barclays Africa Group (BBAG) Limited.

“Since Barclays Plc announced its intension to sell a stake in Barclays Africa Group, we have had three college meetings with our African colleagues,” Maree told a news conference here last week.

He said among other things, SARB and its peers want to see a smooth transition hence looking carefully at the credit portfolio, market situation and capital risks association with share sale.

“We want to make sure that everything goes well and if anything wrong happens, the interest of customers are protected in all the 11 countries where the bank operates,” he said.

Barclays PLC announced in March 2016, that it will sale majority shareholding in Barclays Africa Group, after the 2008 global financial crisis prompted new regulations which made it less profitable for the international bank to own franchises abroad.

“The sell-down presents an opportunity for Barclays Africa financial services group which is committed to Africa,” said BBAG CEO Maria Ramos, who was speaking to a group of African journalists who are visiting the bank’s headquarters.

Ramos said the disengagement of BBAG from BB Plc will allow the former to increase the African ownership through a staff share scheme and will also remove some of the costs paid to regulatory authorities.

“While our shareholding may change, our values and our ambitions have not, we will continue to deepen and grow our position as one of the leading financial services providers in African,” Ramos said.

Barclays Bank Tanzania Limited is a wholly owned subsidiary of BB Plc which owns slightly above 50 per cent of the Africa business. National Bank of Commerce, which is an ABSA Group subsidiary, is also part of BBAG.

South Africa Reserve Bank consults BoT for selling Barclays Plc shares

The South African Reserve Bank (SARB) is in consultation with Bank of Tanzania (BoT) and other Central Banks where Barclays bank Plc has operations to ensure that the majority shares selling goes smoothly.  

SARB acting Deputy Head for Banking Supervision, Neil Maree said the consultations will likely end in 2-3 years because of the sensitivity of the matter as people in 11 African countries have a stake in the bank hence the need for proper regulations.

Maree said they had so for held meetings with Bank of Tanzania officials regarding Barclays Plc divestiture since the London based bank announced its intention to sell its 50 per cent stake in its Africa franchise, which trades as Barclays Africa Group (BBAG) Limited.

“Since Barclays Plc announced its intension to sell a stake in Barclays Africa Group, we have had three college meetings with our African colleagues,” Maree told a news conference here last week.

He said among other things, SARB and its peers want to see a smooth transition hence looking carefully at the credit portfolio, market situation and capital risks association with share sale.

“We want to make sure that everything goes well and if anything wrong happens, the interest of customers are protected in all the 11 countries where the bank operates,” he said.

Barclays PLC announced in March 2016, that it will sale majority shareholding in Barclays Africa Group, after the 2008 global financial crisis prompted new regulations which made it less profitable for the international bank to own franchises abroad.

“The sell-down presents an opportunity for Barclays Africa financial services group which is committed to Africa,” said BBAG CEO Maria Ramos, who was speaking to a group of African journalists who are visiting the bank’s headquarters.

Ramos said the disengagement of BBAG from BB Plc will allow the former to increase the African ownership through a staff share scheme and will also remove some of the costs paid to regulatory authorities.

“While our shareholding may change, our values and our ambitions have not, we will continue to deepen and grow our position as one of the leading financial services providers in African,” Ramos said.

Barclays Bank Tanzania Limited is a wholly owned subsidiary of BB Plc which owns slightly above 50 per cent of the Africa business. National Bank of Commerce, which is an ABSA Group subsidiary, is also part of BBAG.

The Guardian

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