Chase Bank's collapse should have a significant impact on the future of Kenyan Banking Industry. While many could have dismissed Imperial Bank and Dubai bank as niche banks affecting specific communities, the same cannot be said for Chase Bank.

Chase was shaping into a model Bank, aggressively marketing its brand and gaining acceptance accross all industries and societies.

I can bet the list of those who have been burnt will include every Kenyan, from post teens to the aged, to small businesses to large corporates in Kenya.

Qsn. How will this impact on the Kenyan banking Industry?

We can oviously expect increased scrutiny by CBK, focus on corporate Governance, increased disclosure requirements etc.

Can we expect to see consolidations of small players?

Will the large (Tier 1) banks swallow the small players?

Will their be increased regulatory barriers to entry in this market?

How easy will it be for banks to raise funds?

How about the consumer?

Will interest rates move down in the long run?

I am optimistically hoping for lower interest rate ragime coz the small banks will no longer compete for deposits leaving institutions with huge cash positions like insurers, pension funds, KTDA's etc to either accept the lower interest rates of the Tier 1 banks or go directly for government bonds.

Dr. Musalia Mudavadi has the right prescription for collapsing banks, bloated domestic borrowing and high inflation, he did it post 1992, he can do it again 2016, lets throw out this quack called uhuru out of the clinic.

i tend to differ though i may not support the current regime,the major cause this time round is bank leaders giving themselves loans they can't service or even if they can,the law doesn't allow, the government hand in this behavior is yet to be seen

Opus team needs to be given more muscles by use of steroids .problem is the steroid makers (mpigs)are the biggest abusers of steroids since they are the largest loan defaulters till some if them want the interest capped . This is how far we are.

But I'm optimistic there will be sanity in the long run.its just chaos now.banking kenya will be nyeupe kama Pamba.long live opus dei Mei