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Why is Mpesa Bank not regulated by CBK?
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Mainat
#1 Posted : Wednesday, May 01, 2013 6:51:04 PM
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Safaricom receives deposits and lends the same. These are two core banking functions for which banks are supervised stringently with requirements to identify their credit, operational, liquidity risks et al and hold capital as necessary.
Why then does Mpesa not fall under the same rules?
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jerry
#2 Posted : Wednesday, May 01, 2013 7:04:12 PM
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CBA is the bank which is regulated. SCOM is an agent of CBA.
The opposite of courage is not cowardice, it's conformity.
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Museveni
#3 Posted : Wednesday, May 01, 2013 7:09:00 PM
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Mainat wrote:
Safaricom receives deposits and lends the same. These are two core banking functions for which banks are supervised stringently with requirements to identify their credit, operational, liquidity risks et al and hold capital as necessary.
Why then does Mpesa not fall under the same rules?


Of course it is regulated.

All those issues of liquidity, operational & credit risk are all adressed.

The reason you can ONLY deposit/withdraw a maximum of 140,000 & can only have 100,000 maximum hold in your M-Pesa account.

Or what kind of regulation did you have in mind?
Live and learn; and don’t forget, nothing ventured, nothing gained.
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Mainat
#4 Posted : Wednesday, May 01, 2013 9:32:41 PM
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Do you know that for fact ama ni guess work? So does CBA carry the credit risk liquidity risks on its books?
jerry wrote:
CBA is the bank which is regulated. SCObM is an agent of CBA.


M7- tusaidiane jamaneni. Please soma the 2013 Prudential regulations. Hats kama ni chapter one.
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muganda
#5 Posted : Wednesday, May 01, 2013 10:18:48 PM
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I do know that for a fact. Little known but CBA is the proponent and key driver of the MShwari product - depositing/lending for interest. They take most of the gains and risk.
Mainat wrote:
Do you know that for fact ama ni guess work? So does CBA carry the credit risk liquidity risks on its books?
jerry wrote:
CBA is the bank which is regulated. SCObM is an agent of CBA.


M7- tusaidiane jamaneni. Please soma the 2013 Prudential regulations. Hats kama ni chapter one.
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Mainat
#6 Posted : Wednesday, May 01, 2013 11:16:53 PM
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Unless they conned CBK, CBA gets a handling fee since the customers are through Safaricom.

muganda wrote:
I do know that for a fact. Little known but CBA is the proponent and key driver of the MShwari product - depositing/lending for interest. They take most of the gains and risk.
Mainat wrote:
Do you know that for fact ama ni guess work? So does CBA carry the credit risk liquidity risks on its books?
jerry wrote:
CBA is the bank which is regulated. SCObM is an agent of CBA.


M7- tusaidiane jamaneni. Please soma the 2013 Prudential regulations. Hats kama ni chapter one.


Sehemu ndio nyumba
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MoneyMonger
#7 Posted : Thursday, May 02, 2013 7:31:53 AM
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Mainat wrote:
Unless they conned CBK, CBA gets a handling fee since the customers are through Safaricom.

muganda wrote:
I do know that for a fact. Little known but CBA is the proponent and key driver of the MShwari product - depositing/lending for interest. They take most of the gains and risk.
Mainat wrote:
Do you know that for fact ama ni guess work? So does CBA carry the credit risk liquidity risks on its books?
jerry wrote:
CBA is the bank which is regulated. SCObM is an agent of CBA.


M7- tusaidiane jamaneni. Please soma the 2013 Prudential regulations. Hats kama ni chapter one.




I recall from the news that CBA is the lender and not safaricom. M-shwari is a product of CBA to safaricom M-pesa customers. CBA has also been the banker for M-pesa before M-shwari came about.
There is nothing as dangerous as an Idea, when there is only one Idea
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Museveni
#8 Posted : Thursday, May 02, 2013 7:57:20 AM
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MoneyMonger wrote:
Mainat wrote:
Unless they conned CBK, CBA gets a handling fee since the customers are through Safaricom.

muganda wrote:
I do know that for a fact. Little known but CBA is the proponent and key driver of the MShwari product - depositing/lending for interest. They take most of the gains and risk.
Mainat wrote:
Do you know that for fact ama ni guess work? So does CBA carry the credit risk liquidity risks on its books?
jerry wrote:
CBA is the bank which is regulated. SCObM is an agent of CBA.


M7- tusaidiane jamaneni. Please soma the 2013 Prudential regulations. Hats kama ni chapter one.




I recall from the news that CBA is the lender and not safaricom. M-shwari is a product of CBA to safaricom M-pesa customers. CBA has also been the banker for M-pesa before M-shwari came about.


Since you started the thread on M-Pesa, I thought the query was answered satisfactorily.

But since you have expanded to M-Shwari, you know very well these are two distinct services.

When you read the fine print when activating M-Shwari, then utaona unafungua account na CBA, in simple terms, you can say that the M-Shwari A/C is a virtual CBA account. SCOM just herds the subscribers & due to the high subscription rate, it used that as a leverage on CBA to get the higher fees.

See this from the M-Shwari "Terms & Conditions". the one nobody ever reads:

Quote:
2. DEFINITIONS
2.1. In these Terms and Conditions the following words and expressions (save where the context requires otherwise) bear the following meanings:
2.1.1. “M-Shwari Account” means a bank account held by a Customer with the Bank and which is opened and operated in accordance with the terms and conditions herein contained;
2.1.2. “Bank” means Commercial Bank of Africa Limited incorporated in Kenya as a limited liability company under the Companies Act (Chapter 486 of the Laws of Kenya) and duly licensed as a bank under the Banking Act (Chapter 488 of the Laws of Kenya) and includes subsidiaries of the Bank as may from time to time be specified by the Bank to you;


The integration with M-Pesa is just a bonus meant to entice everyone to jump aboard.
Live and learn; and don’t forget, nothing ventured, nothing gained.
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mlennyma
#9 Posted : Thursday, May 02, 2013 8:45:30 AM
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A serious governor would look into coverups which safcom hides behind banks but at the moment they have the goodwill this time hiding in kenyattas bank.
"Don't let the fear of losing be greater than the excitement of winning."
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dunkang
#10 Posted : Thursday, May 02, 2013 8:54:50 AM
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mlennyma wrote:
A serious governor would look into coverups which safcom hides behind banks but at the moment they have the goodwill this time hiding in kenyattas bank.

Ujinga nayo.
Receive with simplicity everything that happens to you.” ― Rashi

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mlennyma
#11 Posted : Thursday, May 02, 2013 8:59:00 AM
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You may b the stupid.
"Don't let the fear of losing be greater than the excitement of winning."
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mlennyma
#12 Posted : Thursday, May 02, 2013 9:06:05 AM
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Which bank handles mpesa deposits?which bank handles kopa credit interest?they should just lend the money themselves without hiding in cba.
"Don't let the fear of losing be greater than the excitement of winning."
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Muheani
#13 Posted : Thursday, May 02, 2013 10:14:24 AM
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@M7 has satisfactorily answered!!
Thats the position
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Sufficiently Philanga....thropic
#14 Posted : Thursday, May 02, 2013 10:23:40 AM
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mlennyma wrote:
A serious governor would look into coverups which safcom hides behind banks but at the moment they have the goodwill this time hiding in kenyattas bank.

This is in bad taste and belongs to the politics section. Very pettySad
@SufficientlyP
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Mainat
#15 Posted : Thursday, May 02, 2013 10:30:48 AM
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CBA is custodian of Safaricom's Mpesa funds. We still not answered the question of why a 400bn deposit institution is not regulated...
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McReggae
#16 Posted : Thursday, May 02, 2013 10:38:10 AM
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Sufficiently Philanga....thropic wrote:
mlennyma wrote:
A serious governor would look into coverups which safcom hides behind banks but at the moment they have the goodwill this time hiding in kenyattas bank.

This is in bad taste and belongs to the politics section. Very pettySad


Washana na madharau wewe!!!!

@Mainat, which exact regulation rules are referring to!!!
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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selah
#17 Posted : Thursday, May 02, 2013 10:43:51 AM
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Mpesa is not regulated, if it were it would be publishing its results like any other bank ...CBK treats Mpesa,although I think it's erroneous,as a money transfer service.We all know Mpesa is a bank I dont know why CBK pretends not to know that....I can save using Mpesa.

The deposit protection fund which was recently restructured has started asking all banks that acts as custodians of Money transfer service providers to furnish them with account statements or information ....That's not sufficient....I still think the mobile money transfer services shld be treated like Banks or deposit taking institutions akin to MFIs.
'......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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mlennyma
#18 Posted : Thursday, May 02, 2013 10:53:37 AM
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@selah you are among the bright candid minds i embrace.
"Don't let the fear of losing be greater than the excitement of winning."
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Museveni
#19 Posted : Thursday, May 02, 2013 10:55:14 AM
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selah wrote:
Mpesa is not regulated, if it were it would be publishing its results like any other bank ...CBK treats Mpesa,although I think it's erroneous,as a money transfer service.We all know Mpesa is a bank I dont know why CBK pretends not to know that....I can save using Mpesa.

The deposit protection fund which was recently restructured has started asking all banks that acts as custodians of Money transfer service providers to furnish them with account statements or information ....Thats no sufficient....I still think the mobile money transfer services shld be treated like Banks or deposit taking institutions akin to MFIs.


M-Pesa - M-Shwari ......

Which service exactly?

Quote:
The devil is in the detail
Live and learn; and don’t forget, nothing ventured, nothing gained.
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mlennyma
#20 Posted : Thursday, May 02, 2013 11:03:55 AM
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Commercial B of Africa has nothing to do with mpesa,and the telco hundles solely the un regulated billions...correct me if am wrong
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