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CBK Governor No Match to Kenyan Banks.
Rank: Elder Joined: 6/27/2008 Posts: 4,114
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nyari wrote:Kenyan Banks will be tamed when CBK pushes them into the secondary market by extending the bidding to Large Multinational Banks(read American banks) with deeper pockets and at lower rates Ask yourself this: why aren't the "Large Multinational Banks(read American banks)" participating in the primary auction right now? GoK 30yr bond yield = 13.5% [http://www.centralbank.go.ke/securities/bonds/manualresults.aspx] GoUS 30yr bond yield = 4.6% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/] GoUK 30yr bond yield = 4.38% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/] Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Member Joined: 8/8/2009 Posts: 170
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mukiha wrote:
@drake; the figures you have given are the HOLDINGS of the various asset classes. These are not [I repeat; NOT] the incomes!
1. Jesus, John and Mary. Are you for real? Do you really think I don't know that? 2. In lay-man's terms this a breakdown of "allocation-of-gross-amounts-lent-(as-broken-down-by-sector)" 3. Consumer comes first followed by Government, However, if you account/adjust for 1. impairment & 2. overlap between sectors, Government comes out as the major beneficiary of amounts lent.
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Rank: Elder Joined: 5/24/2007 Posts: 1,805
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mukiha wrote:nyari wrote:Kenyan Banks will be tamed when CBK pushes them into the secondary market by extending the bidding to Large Multinational Banks(read American banks) with deeper pockets and at lower rates Ask yourself this: why aren't the "Large Multinational Banks(read American banks)" participating in the primary auction right now? GoK 30yr bond yield = 13.5% [http://www.centralbank.go.ke/securities/bonds/manualresults.aspx] GoUS 30yr bond yield = 4.6% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/] GoUK 30yr bond yield = 4.38% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/] @Mukiha, So why do you suppose they are not participating? I Think Therefore I Am
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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bwenyenye wrote:mukiha wrote:nyari wrote:Kenyan Banks will be tamed when CBK pushes them into the secondary market by extending the bidding to Large Multinational Banks(read American banks) with deeper pockets and at lower rates Ask yourself this: why aren't the "Large Multinational Banks(read American banks)" participating in the primary auction right now? GoK 30yr bond yield = 13.5% [http://www.centralbank.go.ke/securities/bonds/manualresults.aspx] GoUS 30yr bond yield = 4.6% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/] GoUK 30yr bond yield = 4.38% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/] @Mukiha, So why do you suppose they are not participating? Depreciating currency Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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bwenyenye wrote:mukiha wrote:nyari wrote:Kenyan Banks will be tamed when CBK pushes them into the secondary market by extending the bidding to Large Multinational Banks(read American banks) with deeper pockets and at lower rates Ask yourself this: why aren't the "Large Multinational Banks(read American banks)" participating in the primary auction right now? GoK 30yr bond yield = 13.5% [http://www.centralbank.go.ke/securities/bonds/manualresults.aspx] GoUS 30yr bond yield = 4.6% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/] GoUK 30yr bond yield = 4.38% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/] @Mukiha, So why do you suppose they are not participating? why wud they when ke yeilds r the lowest in africa, lower even than SA?
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Rank: Elder Joined: 5/24/2007 Posts: 1,805
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@Kizee, Mukiha, My point ecactly. When you push Kenyan banks to the secondary market, how would you stop them from satiating themselves by going for the bonds abroad? The only path to this is regulation (worst case) and improving the Kenyan climate of business. The governor has powers to the limit of the former, not the latter guys. I Think Therefore I Am
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Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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lakini allowing foreigners to be PDs exclusivley is neo-colonialism i suspect thats why we have seen jp morgan and hsbc set up rep offices...i also wonder if they will agree to be market makers..
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Rank: Veteran Joined: 1/7/2010 Posts: 1,279 Location: nbi
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I doubt cbk will ever want to get into the game of dictating lending habits of ze banks. Unless we become like China or get another dictator. Both are possible. In the meantime, I think having better systems for capturing credit information for the whole country will help. And less GoK borrowing The Governor of Nyeri - 2017
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Rank: Member Joined: 1/1/2010 Posts: 511 Location: kandara, Murang'a
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[quote=selah]The Kenyan banks have proven they can arm-twist the Governor and push him to a corner with sleuth techniques. What is Sleuth techniques? Foresight..
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Rank: Member Joined: 3/10/2008 Posts: 301 Location: Abu Dhabi
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kizee1 wrote:mukiha wrote:kizee1 wrote:mukiha wrote:selah wrote:@proverB My arguments are when banks make most of their cash through bonds or investments in CBK instruments it beats the purpose of the banking industry....
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The other thing why would a bank charge me withdrawing charges of up to ksh.100 when in actual sense they are making more than 15% out of my savings. The first statement is a fallacy peddled by Kenyan media. As I have shown above, Bond income is less that 10% of the total income. That cannot be said to be "most of their income"! If your bank is charging you sh100 withdrawal fees, move to another bank. There are many that do not charge these fees, mine being one of them. Don't be a lazy customer! bond income is only 10pct of total? are u aware of an income line known as"other income" ??are u talkin about the interest on gvt securities or on trading gvt securities? Yes, I am aware of it; and it is also around 10% to 15%, bringing the total to around 25%. if you look at Equity [I have the full report], they have listed income from bond trading as a separate entry in note 9[b]... the figure is Sh2.048b; sounds a lot, but note that total income is Sh20.248b So, my estimate of 10% is good. ur math is flawed...i know of one large bank that did 1.5bn in trading and 5bn in revaluation...my point is the line item that made banks cash last year will kill them this year...nearly every banks bond portfolio is under water... The first bank to hang its linen - Giro Bank. http://www.businessdaily...552/1147526/-/2j4fqu/-/
With CBR rate hikes, high inflation, Overnight rising, TBill rates rising, I think banks will bite the dust hard this year if the revaluation figures kizee gives are to go by.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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I am waiting to see banks post 50% - 100% profits this year. It will be interesting... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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hisah wrote:I am waiting to see banks post 50% - 100% profits this year. It will be interesting... 50% - 100% of what? Previous year? Total income? Total assets? Net assets?..... % of what?????? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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mukiha wrote:bwenyenye wrote:mukiha wrote:nyari wrote:Kenyan Banks will be tamed when CBK pushes them into the secondary market by extending the bidding to Large Multinational Banks(read American banks) with deeper pockets and at lower rates Ask yourself this: why aren't the "Large Multinational Banks(read American banks)" participating in the primary auction right now? GoK 30yr bond yield = 13.5% [http://www.centralbank.go.ke/securities/bonds/manualresults.aspx] GoUS 30yr bond yield = 4.6% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/] GoUK 30yr bond yield = 4.38% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/] @Mukiha, So why do you suppose they are not participating? Depreciating currency @Mukiha..c'mon man..
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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If that Giro story is anything to go by then SCBK, DTB, EBL are in sh*
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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Now Its official Bank are Making a killing from the volatile Shilling I dont think we need to go far to see the guys manipulating the shilling with speculative tendencies.If we have banks participating actively in forex trading what do you expect from the shilling.I think Banks are to blame for the volatile shilling and CBK should do something to cap this behavior as it affects majority of kenyans due to over reliance on Imports. Quote:Commercial banks grew their foreign exchange income by 73 per cent in the first three months of the year helped by a volatile Shilling that has seen importers count billions in losses while exporters pocketed gains.
About nine banks that are most active in the foreign currencies market saw their forex trading income increase by Sh1.3 billion to Sh3.6 billion, according to the lenders’ published results for the first quarter.
Quote:The local banking industry has steadily grown foreign exchange trading income in the last eleven years from an industry total of Sh3 billion in 2000 to over 12 billion last year, with smaller banks moving to strengthen their trading desks with more capital outlays in a bid to tap the increased incomes. http://bit.ly/lEVUAU'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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KCB!! LOAR!! Watch out for Q2 baby...mad FCY cash.
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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Is the current policy change by the governor to increase the reserve ratio and CBR a move to tame Banks or is he giving up after the runaway inflation make all his efforts Useless. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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CBK Governor No Match to Kenyan Banks.
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