“South Sudan ordered all government institutions, including state-owned oil and mining companies, to end their business with commercial lenders and open new accounts with the war-torn African nation’s central bank.
The steps will enable the Finance Ministry “to perform and exercise functions and powers appropriate and necessary for efficient and effective public finance management and accountability,” according to the Aug. 6 order signed by minister Stephen Dhieu Dau. They will also “enhance timely reporting to relevant government levels and international financial institutions,” he said.
Institutions and companies affected by the order should start new accounts with the Bank of South Sudan in settlements where it has branches, or with an agent bank nominated by the lender, according to the statement (Bloomberg).”
Kenyan Banks with exposure to South Sudan are:
1. CFC Stanbic Bank
2. Co-operative Bank of South Sudan (Co-op Bank Kenya)
3. Equity Bank South Sudan
4. Kenya Commercial Bank (South Sudan)
Other Commercial Banks in South Sudan Include:
- •Afriland First Bank South Sudan Limited
- •Bank of Khartoum Juba
- •Buffalo Commercial Bank
- •Charter One Bank South Sudan
- •Commercial Bank of Ethiopia (South Sudan) (CBESS)
- •EcoBank South Sudan
- •Eden Commercial Bank
- •International Commercial Bank (South Sudan) (ICBSS)
- •Ivory Bank
- •Liberty Commercial Bank
- •Mountain Trade and Development Bank
- •National Credit Bank
- •Nile Commercial Bank
- •Opportunity Bank PLC
- •Phoenix Commercial Bank
- •South Sudan Commercial Bank
- •Sudan Microfinance Institution (SUMI)
- •Qatar National Bank
The question lies how much exposure do the commercial banks have towards South Sudanese governmental agencies? This might have a negative impact on Commercial Banks performance which rely heavily on businesses from this institutions.
Source: (Bloomberg, Kenyan Wall Street)
