Corporate News
Dr Patrick Njoroge, the Central Bank of Kenya governor. PHOTO | FILE
By OTIATO GUGUYU
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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