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Chase Bank loss...another case of cooking the books?
Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Mike Ock wrote: Blogger Owaahh, who thoroughly researched the Imperial Bank case, now has come with another good analysis, not only of the current banking situation, but of the history of bandia banks in Kenya. I'm sorry Chase Bank depositors, directors have been fleecing banks since the 80s and so far no restitution or jailtime: http://owaahh.com/kenyan-banks-fail/ Chase is not fully Kenyan Owned therefore both Jimnah and this blogger are wrong in that aspect Trust Bank was owned by Indians "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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With the interest being shown by other players in buying chase, it should open doors to customers pretty fast
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Rank: Veteran Joined: 8/10/2014 Posts: 963 Location: Kenya
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KCB, Equity, Centum, I&M and CBA want to buy Chase Bank....now who has the financial muscle to gobble up this brand? http://www.businessdaily.../-/30h5cbz/-/index.html
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Rank: New-farer Joined: 1/21/2015 Posts: 78 Location: Pare Pare
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The story got pulled? The page is offline.
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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Nimerudi wrote:The story got pulled? The page is offline. Iko "Central Bank of Kenya (CBK) governor Patrick Njoroge made the announcement at a Press conference and promised that the facility would be available from 11 a.m Monday. “From tomorrow, Monday at 11 am, we will avail a facility to any bank or microfinance institution that comes under liquidity pressure arising from no fault of their own,” Dr Njoroge said. The CBK is offering the facility as a lender of last resort to cash starved institutions at the risk of distress from loss of confidence in small banks. Dr Njoroge said there will be no limit as to how much support the lenders will get. Asked why the CBK did not offer Chase Bank such help, Dr Njoroge said banking “institutions are in a state of flux and as such the need to improve the instruments in our tool kit.” CBK created the special facility even as it emerged that a number of local banks have lined up to buy Chase Bank on the cheap. The Joshua Oigara-led KCB was Sunday night said to be in pole position to buy the troubled lender whose most valuable asset is its control of the small and medium-sized enterprises (SMEs) market where growth has been strong and returns big. The list of suitors also includes Equity Bank, Commercial Bank of Africa, I & M Bank and investment firm Centum, which is said to be keen on merging Chase Bank operations with its SME-focused associate Sidian Bank (formerly K-Rep). People familiar with the matter said negotiations went into high gear Sunday after two CEOs of the competing buyers flew in from trips abroad to support their teams in the talks. Chase Bank owners, who have lost nearly half of their wealth with the rapid erosion of the lender’s value from about Sh30 billion late last year to about Sh14 billion currently, were said to be in favour of offers from suitors that had promised to keep the troubled lender alive as a subsidiary as opposed to those that want to swallow it up through a merger of operations. The takeover negotiations, which are being done with the CBK’s oversight, are seen as critical to restoring faith in the troubled lender that was shut-down on Thursday in wake of Wednesday’s panic that rendered Chase Bank incapable of meeting its market obligations. Up to Sh8 billion depositor funds left the bank on Wednesday afternoon, hours after the bank’s chairman Zuffrulah Khan and Group MD Duncan Kabui tendered their resignations. It is expected that the transfer of Chase Bank’s ownership to a well-capitalised suitor like KCB would offer the market the assurance that is needed to restore faith in the troubled lender."
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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The bank is sound but will the existing shareholders agree? Of interest to note is that the President was in France and Germany "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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Not KCB or Equity, those guys are anti small business
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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MaichBlack wrote:sitaki.kujulikana wrote:were bank runs during the gold era same as today, most transactions are electronic nowadays. I thought a run should be easier to manage as opposed to when everyone would come to collect their gold or promissory notes or whatever paper money is. How do you manage??? Refuse to give people their money?? Jam systems?? Do you know the consequences of these actions?? I am no expert banker, but I thought electronic transactions would be easier to manage than guys lining up with kiondos to be given cash or coins. some random network timeouts, some random successful transactions that do not hit the other end only to be reversed the next day, at least guys online can not beat up a branch manager. these days I understand you can hire some keyboard ninjas to do your social media 'dirty work', have those ninjas report rosy picture.
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Rank: Member Joined: 2/4/2016 Posts: 175 Location: Global
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There is some light at the end of the tunnel.
Let the aquisition happen but above all Duncan and Zaf must be ndani as we type.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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BD wrote: “From tomorrow, Monday at 11 am, we will avail a facility to any bank or microfinance institution that comes under liquidity pressure arising from no fault of their own,” Dr Njoroge said.
The CBK is offering the facility as a lender of last resort to cash starved institutions at the risk of distress from loss of confidence in small banks. Seems the bank run shook some other banks "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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murchr wrote:BD wrote: “From tomorrow, Monday at 11 am, we will avail a facility to any bank or microfinance institution that comes under liquidity pressure arising from no fault of their own,” Dr Njoroge said.
The CBK is offering the facility as a lender of last resort to cash starved institutions at the risk of distress from loss of confidence in small banks. Seems the bank run shook some other banks Opus Dei talked of opening a facility to restore confidence and assist a financial institution in capital troubles .This hyped level of confidence will help from today small lenders like Rafiki DTM which saw a run in the wake of Chase Bank saga. Rafiki was prompted to cap withdrawal limits to kes 10,000 to enhance survival. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Spikes wrote:murchr wrote:BD wrote: “From tomorrow, Monday at 11 am, we will avail a facility to any bank or microfinance institution that comes under liquidity pressure arising from no fault of their own,” Dr Njoroge said.
The CBK is offering the facility as a lender of last resort to cash starved institutions at the risk of distress from loss of confidence in small banks. Seems the bank run shook some other banks Opus Dei talked of opening a facility to restore confidence and assist a financial institution in capital troubles .This hyped level of confidence will help from today small lenders like Rafiki DTM which saw a run in the wake of Chase Bank saga. Rafiki was prompted to cap withdrawal limits to kes 10,000 to enhance survival. It's called a crisis ama hotline number. Want to know what banks will creep in there seeking help.hope Krep is one of them 
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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enyands wrote:Spikes wrote:murchr wrote:BD wrote: “From tomorrow, Monday at 11 am, we will avail a facility to any bank or microfinance institution that comes under liquidity pressure arising from no fault of their own,” Dr Njoroge said.
The CBK is offering the facility as a lender of last resort to cash starved institutions at the risk of distress from loss of confidence in small banks. Seems the bank run shook some other banks Opus Dei talked of opening a facility to restore confidence and assist a financial institution in capital troubles .This hyped level of confidence will help from today small lenders like Rafiki DTM which saw a run in the wake of Chase Bank saga. Rafiki was prompted to cap withdrawal limits to kes 10,000 to enhance survival. It's called a crisis ama hotline number. Want to know what banks will creep in there seeking help.hope Krep is one of them K-rep has rebranded to Sidian Bank. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Spikes wrote:enyands wrote:Spikes wrote:murchr wrote:BD wrote: “From tomorrow, Monday at 11 am, we will avail a facility to any bank or microfinance institution that comes under liquidity pressure arising from no fault of their own,” Dr Njoroge said.
The CBK is offering the facility as a lender of last resort to cash starved institutions at the risk of distress from loss of confidence in small banks. Seems the bank run shook some other banks Opus Dei talked of opening a facility to restore confidence and assist a financial institution in capital troubles .This hyped level of confidence will help from today small lenders like Rafiki DTM which saw a run in the wake of Chase Bank saga. Rafiki was prompted to cap withdrawal limits to kes 10,000 to enhance survival. It's called a crisis ama hotline number. Want to know what banks will creep in there seeking help.hope Krep is one of them K-rep has rebranded to Sidian Bank. Any special reason for rebranding ama it's to hide some shitty stuff too
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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enyands wrote:Spikes wrote:enyands wrote:Spikes wrote:murchr wrote:BD wrote: “From tomorrow, Monday at 11 am, we will avail a facility to any bank or microfinance institution that comes under liquidity pressure arising from no fault of their own,” Dr Njoroge said.
The CBK is offering the facility as a lender of last resort to cash starved institutions at the risk of distress from loss of confidence in small banks. Seems the bank run shook some other banks Opus Dei talked of opening a facility to restore confidence and assist a financial institution in capital troubles .This hyped level of confidence will help from today small lenders like Rafiki DTM which saw a run in the wake of Chase Bank saga. Rafiki was prompted to cap withdrawal limits to kes 10,000 to enhance survival. It's called a crisis ama hotline number. Want to know what banks will creep in there seeking help.hope Krep is one of them K-rep has rebranded to Sidian Bank. Any special reason for rebranding ama it's to hide some shitty stuff too Rebranding is to hoodwink Wanjiko because nothing shifts from doing things the old way unless management changes their way of implementing CBK policies. Adherence to the regulator is necessary. NBK rebranded a few years ago but it sunk deeper into losses alongside monumental NPLs . John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 12/7/2012 Posts: 11,906
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Because of vested interests & no majority shareholder, it will definitely take long to come up with an agreement acceptable to the major shareholders!!! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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obiero wrote:murchr wrote:gk wrote:Run, run, run..... Not every other massive withdrawal will cause a bank to collapse. Equity did not lose much relative to its total deposit base n its was not a one day drainage. Even last yr after Imperial's fall most smaller lenders had a run but survived just as Chase would have remained afloat had they managed to plug the huge n sudden hole by the following morning.
So long as you can honour your settlemnts at CBK,,, there is a lifeline.
Methinks Chase had some few heavy depositors who jumped ship on the day.... coz they could have survived a run by retail depositors. Sports Pesa Seconded.. That movement caused the collapse Quote:Big clients like the Law Society of Kenya, the United Nations Sacco and betting company SportPesa have also had at least Sh2 billion withheld. Wahh!!! Everyone is caught in this mess, so what about by money in my Lotto account? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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If well established banks are notoriously doing this how about Saccos ? Can an external IT auditor be hired to comb through Saccos? Im.sure it's worse there
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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Spikes wrote:enyands wrote:Spikes wrote:enyands wrote:Spikes wrote:murchr wrote:BD wrote: “From tomorrow, Monday at 11 am, we will avail a facility to any bank or microfinance institution that comes under liquidity pressure arising from no fault of their own,” Dr Njoroge said.
The CBK is offering the facility as a lender of last resort to cash starved institutions at the risk of distress from loss of confidence in small banks. Seems the bank run shook some other banks Opus Dei talked of opening a facility to restore confidence and assist a financial institution in capital troubles .This hyped level of confidence will help from today small lenders like Rafiki DTM which saw a run in the wake of Chase Bank saga. Rafiki was prompted to cap withdrawal limits to kes 10,000 to enhance survival. It's called a crisis ama hotline number. Want to know what banks will creep in there seeking help.hope Krep is one of them K-rep has rebranded to Sidian Bank. Any special reason for rebranding ama it's to hide some shitty stuff too Rebranding is to hoodwink Wanjiko because nothing shifts from doing things the old way unless management changes their way of implementing CBK policies. Adherence to the regulator is necessary. NBK rebranded a few years ago but it sunk deeper into losses alongside monumental NPLs . NBK did not re-brand, it just changed its leopard spots from green to maroon! Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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sitaki.kujulikana wrote:MaichBlack wrote:sitaki.kujulikana wrote:were bank runs during the gold era same as today, most transactions are electronic nowadays. I thought a run should be easier to manage as opposed to when everyone would come to collect their gold or promissory notes or whatever paper money is. How do you manage??? Refuse to give people their money?? Jam systems?? Do you know the consequences of these actions?? I am no expert banker, but I thought electronic transactions would be easier to manage than guys lining up with kiondos to be given cash or coins. some random network timeouts, some random successful transactions that do not hit the other end only to be reversed the next day, at least guys online can not beat up a branch manager. these days I understand you can hire some keyboard ninjas to do your social media 'dirty work', have those ninjas report rosy picture. That is exactly how you elevate panic levels from 100 to 1000!!! The minute people start reporting that electronic transfers are not going through then the rumour is no longer a rumour! The run becomes worse. You actually stop runs by making money available to whoever wants it as soon and as efficiently as possible. In a day or two, people "realize" there is nothing to worry about. And that is why CBK is making money available to banks in distress because the minute someone goes to the bank and can't withdraw their money then that bank is finished! Everyone will go to get their money and of course they will be no money and they will go back every day accompanied by more customers until the day they get their money - or the bank is placed under receivership!!! Economics 101. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Chase Bank loss...another case of cooking the books?
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