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Weekly Lists
June 2, 2017 www.intellinews.com I Page 25
bne:Banker
Tajik central bank to work with Alvarez & Marsal on ailing banking sector
Alvarez & Marsal (A&M) will work with Tajikistan’s central bank on helping the ailing Tajik banking sector to recover, Asia-Plus reported on May 31, citing a meeting between A&M, the European Bank for Reconstruction and Development (EBRD) and the central bank.
The support will mainly go towards TSB and Agroinvestbank - the country’s two largest lenders. No specific details of A&M’s potential consulting roles have been revealed.
The authorities have attempted to rescue distressed banks with capital injections to avert a potential liquidity crisis. But they appear to have been insufficient. Two of the largest Tajik banks, TSB and Agroinvestbank, have been given injections of TJS2.25bn ($225mn) and TJS1.7bn, respectively, but they are still experiencing difficulties.
Turkish banks sustained a strong profit growth path across Jan- uary-April with a 52% y/y increase in their combined net income to TRY17.5bn (€4bn), data from banking sector watchdog BDDK showed on May 31.
Despite the rising profits, however, Turkish banks remain under political pressure to cut interest rates. President Recep Tayyip Erdogan has been calling on the banks to offer more loans at more affordable rates to boost economic activity. On May 24, Erdogan renewed his attack on interest rates by saying that he sees high interest rates as a tool of exploitation.
Turkey's banks have ramped up their lending since the government pledged to make TRY250bn available to businesses under the credit guarantee fund (CGF) scheme.
Austrian banking group Raiffeisen Bank International (RBI) must sell a 15% stake in Raiffeisen Polbank via IPO by end of June, Pol- ish financial market supervisor KNF confirmed on May 30.
KNF was reacting to reports that RBI is seeking to delay the float due to continued risks attached to the valuation of Polbank’s mortgage portfolio, as well as weak results that could hold back demand. The CEO of the parent group is reported to have recently travelled to Warsaw to try to negotiate delaying the sale.
Turkish banks’ combined profits rise 52% y/y in Jan-April
Polish watchdog insists Raiffeisen must float local unit by July