Forgive my innocence,but CAR ni gitu gani? Who conducts them? Who conducted the 'initial' one you have quoted?

Corrector- this sounds correct,but do you have the link to the info or can you email it to me?

www.mjengakenya.blogspot.com

Check it out,but the most serious info is with central bank which refused to mention names


www.businessdailyafrica.com

@mainat....am sourcing for some more info from CBK...whats your email

It is definitely hard to accurately tell how specific banks have perfomed under stress test conditions without knowing the specific assumptions applied in carrying out the tests. This is because the stress test results tend to be driven by the risk profile of a banks assets as proxied by the quality of counterparties and collaterals,and other information not publicly available. Specifically,stress tests tend to use more granular information relating to the various exposures by the bank taking into account the various risks that could arise and their likely impact on capital position.

The assumption could include decrease in value of the investment portfolio,drop in the value of collaterals,increase in default rates,risks as a result of concentration to certain group of clients or sectors,and run on deposits and fire sale of assets.

The information to carry out the stress tests are normally obtained from the prudential information submitted by the banks to the supervisory body or through specific request for additional information from individual banks by the supervisory body. These information could include; Loan-to-Value ratios (LTV),Debt Service Ratios (DSR),credit concentration information,quality of loans,and asset and liability mismatches giving rise to FX and/or interest rate risks.







Creating a culture of risk awareness

Is this the MainaT I thought I knew?
* Kenyan Banks do use LTV on many loans esp cars,real estate
** I am not sure if I trust the valuations (V) used for LTV calculations but the same could be said for the UK & USA
*** Personal loans (esp the type Equity gives out) are normally 'guaranteed' rather than secured by collateral but I believe any large amount has to be secured.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

VV-i don't think they use them ltvs in the same way that the US/Uk banks do was probably the pt I was making. With the exception of StanChart which does do proper due diligence.

MistaT-v true that we need CBK to stop being the banks' cheerleaders and set real deadlines for implementation of Basel2. Having Basel2 implemented would actually make our banks among the best regulated in Africa as only SA has done it.

www.mjengakenya.blogspot.com

I dont think Co-op bank is on the list. they are awash with capital after IPO. They practically doubled their capitalisation. Infact the artcile in the paper rules out the top 3 banks.

@Mainat CFC have approached me to revive an account I had with them but stopped using. Is it safe to keep money with them. Am a layman with no clue on all these banking terms. Thanks.

When did Co-op Bank do a bond issue?


Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB