By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Africa Housing NewsAfrica Housing News
Notification Show More
Aa
  • Home
  • News
  • Real Estate News
  • Nigeria Property News
  • Join Us
    • About Us
    • Contact Us
    • Join Us
Reading: Convicted former UBS Group stock trader now plans to redefine Ghana’s mortgage industry
Share
Aa
Africa Housing NewsAfrica Housing News
  • Home
  • News
  • Real Estate News
  • Nigeria Property News
  • Join Us
Search
  • Home
  • News
  • Real Estate News
  • Nigeria Property News
  • Join Us
    • About Us
    • Contact Us
    • Join Us
Have an existing account? Sign In
Follow US
Africa Housing News > Blog > Mortgage News > Convicted former UBS Group stock trader now plans to redefine Ghana’s mortgage industry
Mortgage News

Convicted former UBS Group stock trader now plans to redefine Ghana’s mortgage industry

Fesadeb
Last updated: 2020/01/23 at 11:40 AM
Fesadeb Published January 23, 2020
Share
SHARE

About a year after he was convicted and subsequently deported to Ghana for illegally trading away the whopping sum of $2.3 billion, Kweku Adoboli said he has a plan to start what he described as Ghana’s “mortgage-backed bond market”.
The 39-year old former stock trader at UBS Group AG disclosed this during a rare interview he recently granted Bloomberg. According to him, part of his plan with the new platform is to help Ghana avert a housing crisis in the future when the country’s population is expected to increase.

“Our job now is to look for ways to expand banks’ balance sheet, to create a mortgage market that would allow us to increase demand-side funding for housing… What are you going to do in 30 years time when our population doubles?”

Interesting estimates: According to Adoboli, the platform he is setting up has the potential to accumulate about “$100 million in mortgage-backed securities” in just one year after it commenced. He said banks could be asked to join as shareholders.
The former UBS Group employee is reportedly confident in the workability of his plan. He told Bloomberg that a feasibility study conducted by him and his unnamed business partners discovered that some 2.5 million Ghanaian households have the capacity to afford a $50,000 home loan
Packaging mortgages into securities and selling the same to investors could also enable banks to concentrate on the important task lending to the real sector of the Ghanaian economy.
In the meantime, the journey may not be all smooth for the University of Nottingham graduate who admitted to suffering depression after being deported to Ghana by UK authorities.
One of the immediate challenges he could face with the new venture is the issue of acceptability. Much like Nigeria, the mortgage is usually not the first option for most homeowners. Bloomberg rightly noted that many of the homeowners in the West African country prefer to buy their own lands and build their homes slowly over time.
Ghana’s capital markets are also relatively new and may not have the same structural capacities, which Adoboli is used to working within the UK. For Ghanaian banks that have just recently come out of a banking crisis, interest rates have been described as high. All these are challenges that could impede on Adoboli’s plan.
To catch up on Adoboli’s story and how he went from a UK top banker to an unusual entrepreneur in Ghana, check out our archives here
source: Nairametrics

You Might Also Like

FG Rolls Out Housing Scheme to Retain Doctors Amid “Japa” Crisis

U.S. Mortgage Applications Decline for Third Consecutive Week Amid High Rates

HDAN Hails Shehu Osidi @ 60: A Man of Vision

AG Mortgage Bank Hands Over 100 Housing Units of Grandlovo Estate to NSCDC Personnel

Nigeria @64: Assessment of Mortgage Institutions in Nigeria

Join Our Whatsapp Group

Contact Image

Join Our WhatsApp Channel

Housing TV Africa is the First Housing News Television
in Africa on Startimes Channel 149 bringing you
Housing News, Mortgage News, Construction News etc

Fesadeb January 23, 2020 January 23, 2020
Share this Article
Facebook Twitter Email Print
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

© Africa Housing News. All Rights Reserved 2024

Welcome Back!

Sign in to your account

Lost your password?