Ethiteri wrote:[quote=Mike Ock]I will just post the link. Account holders musiseme hii ni incitement:
http://www.businessdaily.../-/4271c7z/-/index.html[/quote]
For sure it is incitement.
However facts will help.
1.BOA is a big bank with a Balance sheet circa some trillions.
2.Being "foreign" owned means insider lending of Directors will be less than the lower.
3.Their books are real hence the low profits over the years.Last year,Mumias Sugar and Kuldan Singh and another 13 others mostly developers came on board with bad loans.
4.Making a loss means eating core capital not shakiness or liquidity.
Note too no bank can survive a run on its money by customers.Even the big five would shut if it happened.
Lets stabilize our financial sector by not spreading rumours.Lets stick to the facts.
"The mid-sized lender — controlled by BMCE Bank of Morocco — made
a net loss of Sh1.02 billion in the full-year ended December compared to a net profit of Sh144 million a year earlier.BOA Kenya’s earnings were hit by a
five-fold increase in loan loss provisions to Sh2.1 billion, signalling the potential exposure to defaulting borrowers.
The bank’s gross non-performing loans quadrupled to Sh9.7 billion from Sh2.4 billion, with the lender saying
15 large customers accounted for more than half of the bad debts."
Talk of a clean up operation
Dr Patrick Njoroge kazi iendelee!