@FRM2011,

The bill I opine is not well thought out and thus its implementation or even accent will be a hard nut to crack due to;

1. There seems to be no basis of cap (read 4% on loan and '70%' deposit rate. The market being liberal what justification is there by Jube to warrant the limits?
2. The root cause of the interest spreads is not the banks but the market factors/environment namely the gaarment borrowing appetite as well as private lending arena. As long as the gaarment continues to borrower banks as rational profit making org'ns will tend to maximise returns at low risk. Inaddition, borrowers with low credit risk are already enjoying thin spreads and tend to borrow huge again to the advantage of banks based on volume and risk.
3. As highlighted recently in the industry report, the NPL has really gone up. A closure look depicts that the household lending namely retail are the biggest contributors to this. This implies its a high risk area and thus banks must factor a risk premium in its pricing hence the higher spreads. Putting a limit to this means the banks will limit lending to them and if they have to they substitute the premium from spreads to fees.
4. On Dualeman threatening with a 2/3 marshal is a bit rhetoric knowing who the house occupants are hence an empty threat.

The treasury and CBK have expressed their disfavour with the bill.
we await to see how far then the bill will go.

Okay international banker.

These MPigs are just clowns.It has been mentioned above the cause of the interest rates being high.
Govt borrowing
Surging NPLs which means banks have to put a risk premium when loaning to some sectors of the economy.
MPigs should direct their efforts in sorting the above

Don't think it will be easy for banks to let go. Opus dei is having it difficult to force them to bring rates down,


Big boss have big money to lobby off the votes
Banks might chose not to lend and focus on more income generating like transaction income because they might assume the risks are too high and returns are low

Iv previously worked with banks and know how they roll. It won't be easy dear

With all due respect for opus dei Mei man I feel he should let the market control the rates. But letting those brainless guys mpigs m put a cap to it will slow the economic growth .

Protus tried to control walstreet guys after they were responsible for collapse and he realised it's a complex puzzle to fix

Since I have some shares I bought with banks I would love the banks to put rates at a market rate meaning higher profits better dividends,but as an entreprenuer who wants loans I would love them to bring it down not cap it .so since I'm not an entrepreneur now I would love the first option .

if govt borrowing explains high interest rates, what explains the pathetic rates they offer depositors

Cool then. He should run for office seriously