Barclays Africa to meet CBK over sale of continental stake

Barclays Chairman Francis Okomo-Okello (left), Barclays Africa Group deputy CEO David Hodnett (centre) and Barclays Bank Kenya managing director Jeremy Awori (right) during the bank's annual general meeting at Ruaraka on May 27, 2016. PHOTO | DIANA NGILA | NATION MEDIA GROUP

What you need to know:

  • Bloomberg News had last week quoted Dr Njoroge saying that the bank was treating regulators in the 12 African jurisdictions that it is exiting as ‘flower girls’.

  • Dr Njoroge had urged Barclays Plc and its Johannesburg-based unit to engage with regulators in the countries in which it operates as the British bank exits the continent.

The management of Barclays Africa Group is set to meet Central Bank of Kenya Governor Patrick Njoroge to discuss the ongoing sale of Barclays Plc’s stake on the continent.

Barclays Africa Group Deputy Chief Executive David Hodnett, who jetted into the country to attend the Barclays Kenya annual general meeting on Friday said the officials would discuss concerns raised by the Kenyan regulator on the effects of deconsolidating Barclays Plc.

“We are a systemic bank in all the countries we operate in. For example, in Kenya, we are quite a big bank and, therefore, the regulator quite correctly identifies it as a systemic bank and he must worry about it,” Mr Hodnett said on Friday.

Dr Njoroge had urged Barclays Plc and its Johannesburg-based unit to engage with regulators in the countries in which it operates as the British bank exits the continent.

Bloomberg News had last week quoted Dr Njoroge saying that the bank was treating regulators in the 12 African jurisdictions that it is exiting as ‘flower girls’ with no role to play in the transaction.

MEET FACE TO FACE

“He is correct to expect us to communicate proactively, we want to be able to do that with all our regulators. I’m going to meet face to face with the governor and I think it is something we are going to continue to work on,” said Mr Hodnett.

He said the lender would look beyond the regulatory requirements in South Africa where it is listed to evaluate the likely effects in all jurisdictions it operates in.

Mr Hodnett said that they would have to look at the other banks and how they are set up, whether some other regulators might have to be involved depending on the extent of beneficial ownership.

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