Barclays Africa chiefs to discuss sale of stake with CBK governor
Dr Patrick Njoroge, the Central Bank of Kenya governor. PHOTO | FILE
The management of Barclays Africa Group is set to meet the Central Bank of Kenya Governor Patrick Njoroge to discuss the ongoing sale of Barclays Plc’s stake on the continent.
Barclays Africa Group Deputy CEO David Hodnett, who jetted into the country to attend the Barclays Kenya AGM, on Friday said the officials will discuss concerns raised by the Kenyan central banker over 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.
Governor 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 plans to exit the continent.
Bloomberg News last week quoted governor Dr Njoroge saying that the British bank was treating regulators in the 12 African jurisdictions that it is exiting as “flower girls” with no role to play in the transaction.
“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 they are listed to evaluate the likely effects in all jurisdictions they operate in.
“I would put it that there is the point of legal and suasion. To sell off 50 per cent PLC needs the Reserve Bank of South Africa and the ministry of finance to sign off in writing,” he said.
Mr Hodnett said that then 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.
“For example, say the Kenyan Banking Act has a requirement that says if the beneficial shareholding of Barclays Bank of Kenya goes above a certain amount then the regulator needs to be involved. We will engage on that basis but that will only come if there are some individuals who will gain above that shareholding,” he said.
Dr Njoroge said the CBK is concerned on who the buyer will be and the impact of the deconsolidation on Kenya’s fourth-largest bank.
The Kenyan subsidiary’s shareholders also raised concerns over the possibility of losing the Barclays Bank brand after the sale.
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