PARIS, FRANCE – NOV 21: NOVEMBER 21: Pedestrians pass the BNP Paribas branch on November 21, 2012 in Paris, France. Moody's Investors Service downgraded France, stripping it of its prized AAA credit rating and said further downgrades were possible. (Photo by Yves Forestier/Getty Images)
The Prudential Authority (PA), the financial regulator under the SA Reserve Bank (SARB), has withdrawn permission for BNP Paribas SA to operate from a bank branch.
SARB Deputy Governor Hundi Shajibana, who is also the CEO of the PA, announced the withdrawal in a notice published in the Official Gazette on April 19th. The withdrawal took effect from March 8, following a notification under the Banking Act.
Headquartered in Paris, the group has a presence in around 70 countries and had obtained a branch license in 2012. This has enabled us to convert our representative office, based in Melrose Arch, Johannesburg, into a full commercial branch offering corporate and investment banking services.
BNP Paribas has not yet responded to questions seeking clarification on why the PA withdrew permission to set up a branch and operate as a bank in SA, but at a time when international banks are reducing their exposure to Africa. It was conducted. Standard Chartered announced in April 2022 that it will strategically exit Angola, Cameroon, Gambia, Sierra Leone and Zimbabwe, and exit its consumer and private banking operations in Ivory Coast and Tanzania.
Read | African banks fill the void as international financial institutions withdraw
In 2021, Britain's Atlas Mara announced plans to exit Africa after acquiring banks in seven markets on the continent. The withdrawal was attributed to an unstable currency and a difficult macroeconomic environment.
In 2016, Barclays announced plans to significantly sell its majority stake in Barclays Africa, a joint venture with Absa. In 2022, the remaining shares in Absa were also sold.
In 2010, HSBC withdrew from an $8 billion bid to acquire a majority stake in Nedbank.
