Money Markets
StanChart eyes SME networks to grow loan book
Standard Chartered Bank chairman Wilfred Kiboro and the bank’s corporate advisory and finance Africa managing director Wanjiku Mugane launch the financial institution’s rights issue at the Hilton Hotel, Nairobi on September 7, 2010. Photo/FREDRICK ONYANGO
Posted Wednesday, September 8 2010 at 00:00
Although the clamour for the retail banking segment has been frenetic, Kenyan businesses and in particular small and medium enterprises have become a compelling business segment for banks, more so with the rise of Africa-Asian trade relations.
With growing commercial interests in the Eastern and Central Africa regions, Asian economies have raised the need for banking and financing services to facilitate the roaring trade.
High profile
This has seen high profile share buyouts in some of the continent’s largest banks, as acquiring banks the preferred method of entry in Africa’s banking sector.
Back in 2008, Industrial and Commercial Bank of China (ICBC) will fork out an estimated Sh375 billion ($5.6 billion) to acquire a stake 20 per cent in Standard Bank, the largest bank in Africa by assets.
More recently is banking giant HSBC’s bid to purchase an estimated 70 per cent controlling stake in South Africa’s fourth-biggest bank, Nedbank.
Nedbank Group operates as one of the four largest banking groups in South Africa with banking operations in five other southern African countries and has an alliance with Benin based Ecobank.
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