Connect with us

E-Financial

IFC, BNP Paribas Launch SRT Transaction to Support Trade Finance in Emerging Markets

Published

on

Kindly share this post

IFC and BNP Paribas (BNPP), the European Union’s largest bank as measured by assets and a key player in international banking, announced a landmark Synthetic Significant Risk Transfer (Synthetic SRT) transaction, which will enable BNPP to expand its trade finance activities and continue to support emerging market economies.

 

The transaction is expected to be particularly impactful, as international trade finance flows have been adversely impacted by ongoing global economic uncertainty.

BNPP is a strategic user of SRTs across a variety of asset classes in developed economies, where the SRT product plays an important role in allowing the bank to meet increased lending needs of its clients.

But this deal – a $1 billion SRT on which IFC provided a $50 million risk guarantee – marks the first time BNPP is deploying this product to enable further lending operations in emerging markets. IFC is the sole investor in this transaction.

Synthetic SRTs are still relatively new in emerging markets. By effectively transferring credit risk to investors, this type of transaction allows banks to lower the risk weights on their asset exposures.

Unlike a traditional securitization in which assets are sold to a special purpose entity issuing securities to investors, synthetic SRTs leave the assets on a bank’s balance sheet and third-party investors, such as IFC, assume some of their risk – freeing up regulatory capital and enabling the financial institution to undertake increased lending operations.

“We are delighted to partner with IFC on this landmark transaction to drive the development of trade finance in emerging markets,” said Sandrine Ferdane, Global Head of Financial Institutions Coverage at BNP Paribas.

“In today’s complex macroeconomic environment, SRT securitizations are an important tool that enables a bank [like ourselves] to manage risk and capital to expand lending activity and support emerging market economies.”

“This strategic transaction demonstrates how leading international banks can work with global investors to extend more credit to underserved markets, especially during a period of global volatility.” said Tomasz Telma, Global Head of IFC’s Financial Institutions Group. “We look forward to supporting such innovative structures being deployed in emerging markets.”


Kindly share this post

Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

E-Financial

Kekere-Ekun, CJN Blames Reliance on Telecom Services for Online Banking Glitches

Published

on

Kindly share this post

Kudirat Kekere-Ekun, chief Justice of Nigeria and chairman of the Board of Governors, National Judicial Institute Justice has blamed telecommunications companies for the glitches experienced in the country’s banking sector.

Kekere-Ekun, CJN Blames Reliance on Telecom Services for Online Banking Glitches

Kudirat Kekere-Ekun, chief Justice of Nigeria

Kekere-Ekun said this in her keynote address at the 2024 National Workshop for Justice and Judges on Legal Issues in Telecommunications with the theme, ‘The Role of the Judiciary in Accelerating Digital Transformation in Nigeria.’

The blame on telcos comes in the wake of multiple glitches in online services. On August 14, 2024, customers reported that the Guaranty Trust Bank (GTBank) website was down, leading to speculation that it had been cloned and customer data intercepted.

The CJN said, “I will like to quickly bring our attention to two issues which I consider to be pivotal and which revolve around cyber security and the attendant challenges of exploring the digital space.

“The first is the increased risk of the personal data of consumers being misused or compromised by unscrupulous persons, thus necessitating the need for improved strategies and innovation for consumer protection in the telecommunications sector.

“Also, worth noting are deficiencies in the Banking Sector and which are attributable to reliance on digital services provided by the Telecommunications Sector. There is for instance the major challenge posed by electronically backed transactions which is commonplace in the Banking Sector.”

The CJN said these glitches have led to several issues including hacking of online banking platforms as well as banks being compromised.

“Concerns in this regard include the spate of customers whose online banking platforms have been hacked, as well as banks being compromised due to technological glitches not factored into their day-to-day operations. Consequently, these and several other challenges have resulted in a number of disputes which frequently require adjudication,” she said.

Kekere-Ekun said the deployment of technology in telecommunications plays a pivotal role in the advancement economic system of any country.

She, however, said there is a need to proffer solutions to legal issues arising from digital services provided by the telecommunications sector.

“It is also my expectation that the forum will equip Judicial Officers with the technical skills required for adjudicating disputes arising from the sector and keep them abreast with global standards and best practices,” she added.


Kindly share this post
Continue Reading

E-Financial

Ecobank Serves Customers Notice of Planned Service Disruption

Published

on

Kindly share this post

Ecobank Nigeria has alerted its customers to an upcoming brief service disruption due to scheduled system maintenance on its card services.

Ecobank Serves Customers Notice of Planned Service Disruption

The maintenance is set to occur from 11:00 p.m. on Thursday, November 7, 2024, until 1:00 a.m. on Friday, November 8, 2024.

In a notification to customers, the bank explained that during the maintenance window, cardholders might experience intermittent issues when using Ecobank cards on other banks’ channels.

However, the bank said all its specific channels, including ATMs and POS terminals, will remain operational.

Additionally, other digital platforms—such as the Ecobank Mobile App, USSD *326#, Ecobank Online, Omni Lite, and Omni Plus—will be fully accessible throughout the maintenance period.

The bank expressed apologies for any inconvenience, reaffirming its commitment to providing seamless banking experiences across Africa.

 

 

 

 

 

 

 


Kindly share this post
Continue Reading

E-Financial

Zenith Bank Commends Customers After Successfully Unveiling Upgraded Enhanced Tech infrastructure

Published

on

Kindly share this post

Zenith Bank Plc has announced that it now boasts the best technology infrastructure in the banking industry, positioning itself to provide an exceptional customer experience and superior service delivery moving forward. This upgrade follows a recent comprehensive technology enhancement.

The bank expressed its heartfelt gratitude to customers for their support and patience throughout the upgrade process, while also extending apologies for any inconveniences experienced during this time.

This announcement was made in a social media post on Wednesday, signed by Dame Dr. Adaora Umeoji, OON, the Group Managing Director/CEO.

In her message, the GMD/CEO emphasized the bank’s commitment to delivering an unparalleled service experience, stating, “We undertook this upgrade to ensure we can offer our customers the best possible service.”

Umeoji pledged that Zenith Bank will continue to innovate, ensuring that customer needs are met swiftly, safely, and conveniently.

The post read in part: “On behalf of the Board, Management, and Staff of Zenith Bank PLC, I would like to thank you for your patience and support during our IT infrastructure migration to a new and more robust operating system.

“We are truly grateful for the trust and confidence you have placed in us. The primary reason for undertaking this extensive endeavor was to better position Zenith Bank PLC for improved service delivery to all our valued customers and to create memorable banking experiences at all our touchpoints.

“While I regret the inconveniences and challenges you faced during and immediately after our migration, I am pleased to inform you that Zenith Bank PLC now has the best technology infrastructure in the industry. We are committed to ensuring you experience superior service delivery going forward.

“Rest assured, you remain our top priority, and Zenith Bank will continue to innovate and offer value-added products and services to meet all your banking needs quickly, safely, and conveniently.”


Kindly share this post
Continue Reading

Trending