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Grameen vs Equity
VituVingiSana
#1 Posted : Wednesday, February 10, 2010 7:44:49 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
http://blogs.cgdev.org/o...it-a-repayment-snag.php

There are significant differences between Grameen Bank (the original micro-lender that went big) and Equity Bank...

BUT... it makes me wonder what would happen if entire chamas/groups decided (or could not) pay back their loans to Equity...
VituVingiSana attached the following image(s):
grameenimagesrv.jpg (5kb) downloaded 8 time(s).
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Kamzee
#2 Posted : Wednesday, February 10, 2010 8:11:24 AM
Rank: New-farer

Joined: 2/4/2010
Posts: 16
These chamas are well spread across the Banks e.g Chama account in standard chartered,Co-op etc.Their exodus therefore would not significantly affect Equity.
Equity is the Bank of the mwananchi who goes to the Bank in slippers!
It's only and I dare say major threat is that it appears to be a one man show.When you think Equity you see only one face.Even the founder who is alive and kicking is not visible.
kyt
#3 Posted : Wednesday, February 10, 2010 8:20:20 AM
Rank: Elder

Joined: 11/7/2007
Posts: 2,182
You mean equity has a founder other than "man jamo"? Nkt. On the other hand if kcb did not go down in the triton debacle, then equity is "default proof" as it were. from those chamas. Its a solid bank.
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
VituVingiSana
#4 Posted : Wednesday, February 10, 2010 8:32:19 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
Please read the entire article.

It is a long article but essentially it talks about lower levels of repayments & entire groups defaulting.

There are many similarities & differences between Grameen & Equity so not apples to apples.

I respect Equity for what it has done but I wonder if the controls are sufficient as the bank grew/grows larger?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
the deal
#5 Posted : Wednesday, February 10, 2010 9:07:31 AM
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Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Equity bank today supply:754000000 vs demand of 500k...???
VituVingiSana
#6 Posted : Wednesday, February 10, 2010 9:13:06 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
@the deal:

The supply/demand seems closely matched at 12.11 pm

D 577k
S 736k
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Wa_ithaka
#7 Posted : Wednesday, February 10, 2010 10:10:41 AM
Rank: Veteran

Joined: 1/7/2010
Posts: 1,279
Location: nbi
I think the issue of loans to the bottom of the pyramid is not Equity specific at all. Infact, I'd add Family Bank, Co-op (a lot of saccos having huge issues) and K-Rep to the list that would be affected by any percieved increase in default rates among this class.
The Governor of Nyeri - 2017
VituVingiSana
#8 Posted : Wednesday, February 10, 2010 10:46:24 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
Wa_ithaka wrote:
I think the issue of loans to the bottom of the pyramid is not Equity specific at all. Infact, I'd add Family Bank, Co-op (a lot of saccos having huge issues) and K-Rep to the list that would be affected by any percieved increase in default rates among this class.


True but only Co-op & equity are listed. I am looking at Co-op as an investment but I might dump my EB as well...

I have no Family or K-Rep...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
cnn
#9 Posted : Wednesday, February 10, 2010 11:04:45 AM
Rank: Veteran

Joined: 6/17/2009
Posts: 1,627
Is it an error? Rich is showing supply for equity at 784 million shares! That will be significant if it is executed.
muganda
#10 Posted : Wednesday, February 10, 2010 12:53:41 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Oooh is that what @the deal's post was about; definitely an error.

the deal wrote:
Equity bank today supply:754000000 vs demand of 500k...???

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