Latest news with #Centralbank
RTÉ News
15-05-2025
- Business
- RTÉ News
40% of compliance leaders struggling with new regulations
Almost 40% of senior compliance professionals in Ireland's financial services sector are struggling with the volume of new regulatory requirements, new research reveals. The report from the Compliance Institute reveals growing strain on the industry, with many citing EU and Central bank rules as key areas of concern. The top challenge, cited by 42% of respondents, was the sheer volume of regulation, followed by pressures related to EU regulations, the Digital Operational Resilience Act, and resource constraints. The report reveals that 64% of organisations feel prepared for future compliance demands. Just 2% said they're unprepared, while one-third are somewhere in the middle. "Regulation is increasing in pace and complexity, stretching teams and systems to their limits," said Michael Kavanagh, CEO of the Compliance Institute. "While it's encouraging that nearly two-thirds of organisations feel prepared to meet these demands, the reality is that compliance teams are under sustained pressure," he added. According to the report, many teams are struggling to manage regulatory obligations without the support of adequate technology. In terms of the adoption of new technologies such as AI and blockchain, respondents recognise their potential but said they need more guidance, better training and stronger regulatory clarity. Compliance challenges also vary by sector. Credit unions and insurers report added pressure due to sector-specific requirements, while international firms face a balancing act across divergent regulatory frameworks, especially in areas like ESG, where regional expectations often conflict. "Compliance now more than ever is about shaping culture, embedding trust, and enabling sustainable growth," said Mr Kavanagh. "The most successful organisations are those where compliance is integrated early in the decision-making process and where leadership sets the tone from the top," he added.
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Business Standard
14-05-2025
- Business
- Business Standard
IMF disburses $1.023 bn tranche to Pak; to hold discussions about budget
The International Monetary Fund has disbursed a second tranche of $1.023 billion under the Extended Fund Facility programme for Pakistan, the central bank said on Wednesday. The disbursement of the second tranche comes on a day when the International Monetary Fund (IMF) is holding virtual discussions on Pakistan's upcoming budget as the visit of its mission to Islamabad was delayed due to security concerns in the region. The federal government is planning to unveil the budget for fiscal 2025-26 on June 2. The IMF talks will continue until May 16. The Central bank said the second tranche amount would be reflected in its foreign exchange reserves for the week ending May 16. The amount was approved last week by the IMF board under the ongoing Extended Fund Facility (EFF) and allowed an additional arrangement for the $1.4 billion Resilience and Sustainability Facility (RSF). The decision to release the funds came after the IMF expressed satisfaction on the first review of Pakistan's economic reform programme supported by the EFF Arrangement, the bank said. The IMF noted that Pakistan's policy efforts under the EFF had already delivered significant progress in stabilising the economy and rebuilding confidence, amidst a challenging global environment. Fiscal performance has been strong, with a primary surplus of two per cent of gross domestic product achieved in the first half of FY25, keeping Pakistan on track to meet the end-FY25 target of 2.1 per cent of GDP. Pakistan's gross reserves stood at $10.3 billion at end-April, up from $9.4 billion in August 2024, and are projected to reach $13.9 billion by end-June 2025 and continue to be rebuilt over the medium term, it was pointed out. Meanwhile, the IMF talks that started virtually Wednesday will continue until May 16. The global lender has appointed a new mission chief to Pakistan and the mission is now expected to travel to Islamabad over the weekend, subject to the security situation, government sources told The Express Tribune on Tuesday. The IMF mission delayed its scheduled arrival here on Tuesday due to uncertainty caused by the India-Pakistan conflict that had affected air travel across the region. Virtual discussions are expected to be held from today. For the second and final leg of the talks, the IMF team is expected to arrive in Islamabad on Saturday and stay until May 23, the source said. The IMF's Resident Representative to Pakistan Mahir Binici did not respond to a request for comment on the change in the travel plan. Finance Ministry spokesperson Qumar Abbasi also did not respond to questions on the change in the travel plans. Meanwhile, the IMF appointed Iva Petrova, a Bulgarian origin staff member, as new Mission Chief to Pakistan. She would join the discussions along with the outgoing Mission Chief Nathan Porter who served in the position for an extended term. Binici also did not comment on whether both outgoing and new mission chiefs would join both rounds of talks. Petrova, who holds a PhD degree in economics from the Michigan State University, has been serving as the IMF Mission Chief to Armenia. Previously, she had served with the missions to Israel, Iceland and Latvia. In Pakistan, the fiscal policy is expected to remain tight in the next fiscal year too. The IMF has asked Pakistan to make a budget on the assumption of having 1.6 per cent of the GDP primary budget surplus, which will require generating about Rs 2 trillion over and above the non-interest expenses. The tax target for the Federal Board of Revenue (FBR) is proposed to be 11 per cent of the GDP or Rs 14.3 trillion. The IMF would examine whether the government plans to take credibly realistic measures to back the new tax target, said the sources. The IMF has set multiple fiscal conditions, whose successful completion has so far helped smooth continuation of the programme despite initial setbacks. Pakistan has met the IMF targets for a primary budget surplus by the federal government, as well as net revenue collection and cash surplus targets by the four provinces. Against a primary surplus target of Rs 2.7 trillion, the federal government reported a surplus of Rs 3.5 trillion, or 2.8 per cent of GDP. The size of the federal budget still remains tentative due to redoing of defence needs and the government plans to announce less than Rs 18 trillion budget. The overall budget deficit target after incorporating large provincial cash surpluses is projected at 5.1 per cent of the GDP or Rs 6.7 trillion, the sources said.
Zawya
25-03-2025
- Business
- Zawya
Varying licensing fee regimes leave investors unsure of banking costs
Banking investors in East Africa are still subjected to a varying licensing fee regime, with greater implications on the cost of banking services despite efforts by regional monetary authorities to harmonise banking laws and regulations, to bolster the implementation of the single currency regime, the third pillar of regional integration after the common market and the customs union. Data by the regional Central banks show investors seeking to set up banking operations in the region are still paying different licensing fees despite efforts to promote the region as a single investment destination in line with the broader East African integration agenda. Kenya which prides to offer investors the least cost licensing regime for banks in the region has announced a plan to raise the fees over a three-year period, setting stage for increased cost of banking services as lenders pass on the extra charges to the consume of financial goods and services.'The Central Bank of Kenya (CBK) proposes to adopt gross annual revenue (GAR) methodology at a rate of one percent prorated over a period of three years. The progressive review of licence fees over three years is expected to moderate the potential adverse and significant impact on profitability and viability of banks,' says CBK. CBK proposes the upward review of licence fees for commercial banks to be done progressively over a period of three years to ensure that the banks are able to transition smoothly into the new licensing fee framework. CBK is forecasting the profitability of Kenyan banks to fall by an estimated 1.8 percent in the first year (2025), 2.4 percent in the second year (2026) and 3.1 percent in the third year (2027), with Central bank generating Ksh4.5 billion ($34.88 million), Ksh6 billion ($46.51 million) and Ksh7.5 billion ($58.13 million) from the new fees respectively. During the first year of implementation, CBK proposes to apply a rate of 0.6 percent, second year, a rate of 0.8 percent and ultimately in the third year at a rate of 1 percent. Kenya Bankers Association (KBA), the banks' lobby group says the proposed increase in the licensing fee will increase the banks operating costs prompting lenders to pass it to consumers. Read: CBK gives digital credit providers six months to apply for licencesThe latest disclosure by Kenya's Central bank over the proposed licensing fee hike for commercial banks comes after the Bank of Uganda(BoU) took a similar measure in the year 2022, increasing the licensing fee for a new commercial bank from Ush2 million ($542.81) to Ush50 million ($13,570.5) , that of a new credit institution from Ush2 million ($542.81) to Ush30 million ($8,142.27) and that of a new micro-deposit taking institution from Ush2 million ($542.81) to Ush20 million ($5,428.18). Uganda's existing commercial banks, credit institutions and micro-deposit taking institutions were required to pay 0.05 percent of their gross annual revenue when seeking a renewal of their licences. A central bank study that sampled four countries in the East African region reveals that Uganda is the most expensive destination in terms of bank licensing fees followed by Tanzania, Rwanda and Kenya being the least cost. CBK's 'Consultative paper on the review of commercial banks licence fees in Kenya' published this month (March) shows that the Bank of Uganda (BoU) charges lenders ( in Kenya shillings equivalent) a minimum of Ksh2 million ($15,503.87) in licence fee based on the 0.05 percent of the gross annual revenue of the bank while the Bank of Tanzania (BoT) charges a standard set fee of Ksh600,000 ($4,651.16). The National Bank of Rwanda (NBR) charges an estimated Ksh628, 350 ($4,870.93) in licence fees for commercial banks, also based on 0.5 percent of gross annual revenue of the bank. Kenya is the least cost destination for banking business with the minimum licensing fee based on of between Ksh100,000 ($775.19) to Ksh400,000 ($3,100.77) using the branch-based methodology.'A review and analysis of licence fees charged by selected regional and international regulators indicate that Kenya's license fees are lower. In East Africa, Kenya's licence fees are the least compared to Uganda, Rwanda, and Tanzania,' according to the CBK study. Read: Uganda taxes, high cost of business keep investors at bayAccording to Tanzania's Banking and Financial Institutions (Licensing) Regulations 2014, an applicant for a banking licence must pay a non-refundable application fee of Tsh10 million ($3,776.23) or any other amount as may be determined by the regulator. Across the continent Ghana and Nigeria charge standard set fees of Ksh1.3 million ($10,077.51) and Ksh953, 667($7,392.76) respectively, according to the CBK study. Globally Malaysia and Canada charge standard set fee of Ksh4.8 million ($37,209.3) and Ksh4 million ($31,007.75) in banking licences respectively. Singapore charges a fee of between Ksh1.5 million ($11,627.9) and Ksh1.875 million ($14,534.88) based on a branch-based methodology. Kenya and Singapore use a branch-based methodology to determine the applicable annual licence fees payable by each commercial bank where a variable model is used while Zambia uses the Proportion of Deposits methodology. Uganda and Rwanda used the Gross Annual Revenue (GAR) methodology where a predetermined rate is used to levy licence fees on total revenue generated by a bank, including both funded income from lending activities and non-funded income from fees and commissions, dividend income, and interest income from other investments. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
