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KCB running Chase Bank (in receivership)
Rank: New-farer Joined: 3/28/2016 Posts: 37 Location: nairobi
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MaichBlack wrote:Ericsson wrote:@washiku
Owining two competing etities in the same market.
Unless either they decide chase bank and ecobank be merged Economics 101: Owning two competing business is NOT conflict of interest (especially if you are a major shareholder in both). It could be loosely be deemed to some sort of conflict if you are a major shareholder in one and a minor shareholder in the other and you use you influence in the company where you are the minor shareholder to push for decisions that favour the company where you are the major shareholders - But where would the major shareholders in the company you are a minor shareholder be when you are pulling that off. Conflict of interest comes in when companies are interacting/trading with each other. Like Ciano selling vegetables to Uchumi or if Dr. Opus Dei would own a bank/become the main shareholder in one! Owning 2 competing entities in a market can be construed as 'unwarranted concentration of economic power' as outlined in section 50 of the competition act. HOWEVER, for the competition authority to determine so, there are some rules there-under. like for example there needs to be evidence of ownership i.e Ownership concentration - where one or more undertakings control a substantial ownership interest in businesses or the productive inputs of a particular industry in the economy to affect the market outcomes in a manner that will result to the effects set out in Section 50(4) of the Act. Another vital rule is whether the combined market share of the undertaking is more than 40%; If so the competition authority can act. In your case i doubt ecobank and chase can command 40 percent of the market. Another issue that flows from all that is who regulates competition and such related matters in the banking sector. CAK or CBK??
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Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
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To the new farers. kcb purchase is mental. Now, wanjiku wld bet KCB to be safest as per CBK nod of approval
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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obiero wrote:To the new farers. kcb purchase is mental. Now, wanjiku wld bet KCB to be safest as per CBK nod of approval Thought so too, don't see a commitment. Its all good anyway. "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: Member Joined: 8/17/2007 Posts: 294
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murchr wrote:obiero wrote:To the new farers. kcb purchase is mental. Now, wanjiku wld bet KCB to be safest as per CBK nod of approval Thought so too, don't see a commitment. Its all good anyway. they've been given a chance to go peep before committing
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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instinct wrote:murchr wrote:obiero wrote:To the new farers. kcb purchase is mental. Now, wanjiku wld bet KCB to be safest as per CBK nod of approval Thought so too, don't see a commitment. Its all good anyway. they've been given a chance to go peep before committing They will need to rebrand from chase to kcb. The name chase gives bad memories and reduces confidence. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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instinct wrote:murchr wrote:obiero wrote:To the new farers. kcb purchase is mental. Now, wanjiku wld bet KCB to be safest as per CBK nod of approval Thought so too, don't see a commitment. Its all good anyway. they've been given a chance to go peep before committing They will take their time to pick the carcas of what remains of Chase Bank, woo all the good and juicy customers as they learn what attracted them to Chase. When done, they will simply let go off the remainder of the shell and declare it unsalvageable. Take on the good employees and prime locations and rebrand them as KCB. Smart move by KCB and CBK. No one looses out other than the dodgy Chase shareholders "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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MaichBlack wrote:kiash wrote:Is it true that 97% of the account holders had only 6% of the bank deposits? 3% held 94% so you can imagine who are the 3% this explains a lot. That is life. Hata "mayuu". Ever heard of the 1% in the US - Who control 90% of the wealth??? To quote Bernie Sanders, the socialist; "There is something profoundly wrong when the top one tenth of one percent owns as much wealth as the bottom 90 percent" cc US voters. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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The big questions:1. Which depositors don't interpret this as a call to MOVE funds? Including via online and mobile banking come Wednesday? 2. Do the hefty depositors locked in, 64bn in 5,000 accounts, who obviously have relations with more than one bank, agree to move to KCB?
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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muganda wrote:The big questions:1. Which depositors don't interpret this as a call to MOVE funds? Including via online and mobile banking come Wednesday? 2. Do the hefty depositors locked in, 64bn in 5,000 accounts, who obviously have relations with more than one bank, agree to move to KCB? There is a good reason why banks record depositors on the debit column (beyond accounting practice). The real value to KCB is in the loan portfolio and especially the SME customers that Chase has attracted over the years. These ones are much harder to move. For the long term, some value could come from the brand but I don't think KCB will want a competing brand in its stable. Remember the challenges they have had over the years in integrating Savings and Loan, which is their baby. "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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Wakanyugi wrote:muganda wrote:The big questions:
1. Which depositors don't interpret this as a call to MOVE funds? Including via online and mobile banking come Wednesday?
2. Do the hefty depositors locked in, 64bn in 5,000 accounts, who obviously have relations with more than one bank, agree to move to KCB?
There is a good reason why banks record depositors on the debit column (beyond accounting practice). The real value to KCB is in the loan portfolio and especially the SME customers that Chase has attracted over the years. These ones are much harder to move. For the long term, some value could come from the brand but I don't think KCB will want a competing brand in its stable. Remember the challenges they have had over the years in integrating Savings and Loan, which is their baby. Interesting @Wakanyugi, very good point and one I missed. I see profile of their loans and advances to customers as at 2014 was: 44% maturing within one year 17% maturing within 1-3 years 39% maturing over three years Chase was reputed for being a 'very understanding lender'. So how many of the loans and advances to these captive customers are unsecured - 50%? 65%? 75%?
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Do you think it is in order that Chase staff are busy singing and dancing and circulating videos while billions of depositors' funds are stuck in an organisation where dirty deals were going down? Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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KCB may raise up the target amount for the rights issue to cater for Chase Bank acquisition. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Wakanyugi wrote:muganda wrote:The big questions:1. Which depositors don't interpret this as a call to MOVE funds? Including via online and mobile banking come Wednesday? 2. Do the hefty depositors locked in, 64bn in 5,000 accounts, who obviously have relations with more than one bank, agree to move to KCB? There is a good reason why banks record depositors on the debit column (beyond accounting practice). The real value to KCB is in the loan portfolio and especially the SME customers that Chase has attracted over the years. These ones are much harder to move. For the long term, some value could come from the brand but I don't think KCB will want a competing brand in its stable. Remember the challenges they have had over the years in integrating Savings and Loan, which is their baby. What is the reason? In most cases, you will find that total net book value is usually less than total custom deposits, the bank cannot only be interested in loan book at the expenses of deposits since the later determines the former If Obiero did it, Who Am I?
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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KulaRaha wrote:Do you think it is in order that Chase staff are busy singing and dancing and circulating videos while billions of depositors' funds are stuck in an organisation where dirty deals were going down?
Yes, their livelihoods has been restored depositors like @Alma who've less than 1m will be dancing and buying alcohol rounds in bars on 27th;do not miss out on this opportunity for free drinks! If Obiero did it, Who Am I?
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Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
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Ericsson wrote:KCB may raise up the target amount for the rights issue to cater for Chase Bank acquisition. Do you know how much in retained earnings are held by KCB
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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obiero wrote:Ericsson wrote:KCB may raise up the target amount for the rights issue to cater for Chase Bank acquisition. Do you know how much in retained earnings are held by KCB iam not friendly to any company planning for a rights in a bear "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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Retained earnings its tricky to touch them because it will affect the statutory capital. Retained earnings is a component of core capital. @mlennyama Bear run inategemea na mtu.Some guys are dancing over the appreciation of Safaricom. Utaona rights ikiwa oversubscribed ushangae pesa imetoka wapi Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Ericsson wrote:Retained earnings its tricky to touch them because it will affect the statutory capital.
Retained earnings is a component of core capital.
@mlennyama
Bear run inategemea na mtu.Some guys are dancing over the appreciation of Safaricom.
Utaona rights ikiwa oversubscribed ushangae pesa imetoka wapi somehow true,it depends on the stamina of the bull on sale "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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Swenani wrote:Wakanyugi wrote:muganda wrote:The big questions:1. Which depositors don't interpret this as a call to MOVE funds? Including via online and mobile banking come Wednesday? 2. Do the hefty depositors locked in, 64bn in 5,000 accounts, who obviously have relations with more than one bank, agree to move to KCB? There is a good reason why banks record depositors on the debit column (beyond accounting practice). The real value to KCB is in the loan portfolio and especially the SME customers that Chase has attracted over the years. These ones are much harder to move. For the long term, some value could come from the brand but I don't think KCB will want a competing brand in its stable. Remember the challenges they have had over the years in integrating Savings and Loan, which is their baby. What is the reason? In most cases, you will find that total net book value is usually less than total custom deposits, the bank cannot only be interested in loan book at the expenses of deposits since the later determines the former When you deposit money in an account the Bank considers it a loan that you can often call back any time. So it goes to the liability column. But when you borrow money from a bank, the logic is reversed. To the Banker, you are now the gift that keeps on giving. Of course I am not a banker...but akina Kula Raha wanaweza kuchangia huu mjadala. "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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You need to be very bold to deposit any money here,the first month will be hell withdrawal "Don't let the fear of losing be greater than the excitement of winning."
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