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Law Capping interest rates
Rank: Member Joined: 10/28/2008 Posts: 41
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the deal wrote:
3. Banks which dont have alot of corporate fixed deposits.
Also lost on this one  The crowd will cheer your coronation as well as your beheading. People like a show, that's all.
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Rank: Member Joined: 10/28/2008 Posts: 41
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the deal wrote:Impunity wrote:the deal wrote:Hello, tough times ...the banking sector used to be a darling o many...even a novice investor could close their eyes and pick a stock to ride...well this is no more...
I think after this purge has exhausted its blood trail & you are still standing...its better to check the following before investing in the sector
1. Banks with less reliance on interest income. A bank like CFC Stanbic comes to mind.
2. Banks whose regional subsidiaries contribute more than 20% of pretax profit I.e I&M & DTB?
3. Banks which dont have alot of corporate fixed deposits.
Elaborate point no. 3. Most banks will convert savings & fixed deposits to current accounts to avoid paying heavy interest expenses...its easy to convert Kamau's fixed deposit into a current account than for Britam...what you will see going forward is banks coming up with stupid products just to move your account I tend to disagree coz they have been enjoying(corporates) and paying(banks) good interest rates. Based on their larger deposits, they always enjoyed favorable rates. I mean even a common Joe/Jane would easily get 60-70% of T Bill rate on a fixed deposit account with only a couple of million. I don't know. what say you on that? The crowd will cheer your coronation as well as your beheading. People like a show, that's all.
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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Banks will sail strong through this one.. As late as Oct 2015 banks offered upto 21‰ interest on FDR with onward lending at 24%.. The law now supports a wider spread based on current CBR.. i.e 7% for deposits and 14% on debt.. Classification of the category client to qualify for 70% on CBR remains the only elephant in the room
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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watesh wrote:obiero wrote:Boris Boyka wrote:Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance. Stop giving out such devious ideas Hahaha thats what will be done Is the cbr rate flat? Bs They try this, mps are still there, we are sorted. punda amecheka
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Rank: Elder Joined: 2/26/2012 Posts: 15,979
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newfarer wrote:watesh wrote:obiero wrote:Boris Boyka wrote:Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance. Stop giving out such devious ideas Hahaha thats what will be done Is the cbr rate flat? Bs Is it not? "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: 3/19/2010 Posts: 3,504 Location: Uganda
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murchr wrote:newfarer wrote:watesh wrote:obiero wrote:Boris Boyka wrote:Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance. Stop giving out such devious ideas Hahaha thats what will be done Is the cbr rate flat? Bs Is it not? They try this nonsense, they get sorted by mps. Coop bank has complied the sharks are reluctant. You know them by their deeds. Sharks punda amecheka
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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newfarer wrote:murchr wrote:newfarer wrote:watesh wrote:obiero wrote:Boris Boyka wrote:Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance. Stop giving out such devious ideas Hahaha thats what will be done Is the cbr rate flat? Bs Is it not? They try this nonsense, they get sorted by mps. Coop bank has complied the sharks are reluctant. You know them by their deeds. Sharks That move by COOP is gold medal material.. Expect mass buyouts from laggard banks.. First mover advantage. Long live Gideon
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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sparkly wrote:14% is still too high.
I know people with mortgages at 3%, yes in Kenya and yes from the same same banks. This is money from the employer not the bank. Like GOK gives select banks money for onward lending to civil servants and the interest is actually a service fee to the Bank. Just like Helb. Fanya homework my friend. Banks also give cheap loans to their employee but in that case they are acting as an employer. Heck, the rest of us give our employees loans at 0%. Like when your house girl or shamba boy wants a 2,000/= loan. Do we use those rates in this argument??? 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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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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MaichBlack wrote:sparkly wrote:14% is still too high.
I know people with mortgages at 3%, yes in Kenya and yes from the same same banks. This is money from the employer not the bank. Like GOK gives select banks money for onward lending to civil servants and the interest is actually a service fee to the Bank. Just like Helb. Fanya homework my friend. Banks also give cheap loans to their employee but in that case they are acting as an employer. Heck, the rest of us give our employees loans at 0%. Like when your house girl or shamba boy wants a 2,000/= loan. Do we use those rates in this argument??? @sparkly must have outsourced that post.. Its not possible that he could have typed such tripe
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 2/26/2012 Posts: 15,979
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obiero wrote:MaichBlack wrote:sparkly wrote:14% is still too high.
I know people with mortgages at 3%, yes in Kenya and yes from the same same banks. This is money from the employer not the bank. Like GOK gives select banks money for onward lending to civil servants and the interest is actually a service fee to the Bank. Just like Helb. Fanya homework my friend. Banks also give cheap loans to their employee but in that case they are acting as an employer. Heck, the rest of us give our employees loans at 0%. Like when your house girl or shamba boy wants a 2,000/= loan. Do we use those rates in this argument??? @sparkly must have outsourced that post.. Its not possible that he could have typed such tripe  "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: 2/26/2012 Posts: 15,979
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obiero wrote:newfarer wrote:murchr wrote:newfarer wrote:watesh wrote:obiero wrote:Boris Boyka wrote:Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance. Stop giving out such devious ideas Hahaha thats what will be done Is the cbr rate flat? Bs Is it not? They try this nonsense, they get sorted by mps. Coop bank has complied the sharks are reluctant. You know them by their deeds. Sharks That move by COOP is gold medal material.. Expect mass buyouts from laggard banks.. First mover advantage. Long live Gideon CBR is fixed aint it? So why not fix this new loan? All banks are out to make a profit. Reducing balance kitu gani. "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: 6/23/2009 Posts: 13,475 Location: nairobi
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obiero wrote:sparkly wrote:MaichBlack wrote:sparkly wrote:obiero wrote:MaichBlack wrote:obiero wrote:muandiwambeu wrote:Ebenyo wrote:obiero wrote:I told you guys to sell off bank stocks in 2014. Luckily made it out of some major holdings in good time.. but a big percent of your portfolio is still in banks! so, what do you expect to be a fair hair cut on obieros portfolio as a result of kamwanaas house attempt to please Wanjiku. what will be the overall industries' hit in percentage. my fair guess from my lender's perspective (16-14.5)/(16*0.5)*100=18.75% conservetively thieves. COOP & HF will come out strongest in this.. Too little meat to be bitten out from the two. Plus HF has never been strong on deposits being only licensed to have current accounts a few months ago!! HF will have the least interest expense of all listed lenders Hey @Obiero. Bill not signed. And please note I did not put the word 'yet' at the end. Its bound to be signed on Monday 29th Aug 2016 The bankers will visit statehouse with big brown envelop and this story will be forgotten. I like how people replace basic economics with conspiracy theories. But at least, conspiracy theories can be as simple as you want them to be. Oh, big brown envelope. Oh, he owns a bank. Oh, bla bla bla. Why tax your brain with economics? Rent-seeking is not a conspiracy theory my brother @maich. It is the reality. How else do you think people who earn KShs 2m salary, have never run a business still manage to donate KShs 100m per month in harambees and spend KShs 5B in electioneering campaigns? On to the next.. Our president fetted internationally for being a visionary http://www.businessdaily...359044-wj0xh5/index.html
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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newfarer wrote:murchr wrote:newfarer wrote:watesh wrote:obiero wrote:Boris Boyka wrote:Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance. Stop giving out such devious ideas Hahaha thats what will be done Is the cbr rate flat? Bs Is it not? They try this nonsense, they get sorted by mps. Coop bank has complied the sharks are reluctant. You know them by their deeds. Sharks Wooi, they started!! "at no more than 4% of the base rate set.." is ambigous!!!!!!!!!!!! 1. Is it 10.5 + 4%=14.5% [Base rate + 4%] 2. Is it 4% of 10.5=0.42% [4% of base rate] 3. Is it (4% of 10.5) + 10.5=10.92 [4% of base rate above the base] Sellers continue selling. Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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MaichBlack wrote:sparkly wrote:14% is still too high.
I know people with mortgages at 3%, yes in Kenya and yes from the same same banks. This is money from the employer not the bank. Like GOK gives select banks money for onward lending to civil servants and the interest is actually a service fee to the Bank. Just like Helb. Fanya homework my friend. Banks also give cheap loans to their employee but in that case they are acting as an employer. Heck, the rest of us give our employees loans at 0%. Like when your house girl or shamba boy wants a 2,000/= loan. Do we use those rates in this argument??? What are you disputing? That 14.5℅ is high or there are people with 3℅ mortgages? Anyway Jifurahishe my friend. I know you are desperate to score a point after running your mouth all over Wazua how the Bill could not be signed. Life is short. Live passionately.
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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murchr wrote:obiero wrote:newfarer wrote:murchr wrote:newfarer wrote:watesh wrote:obiero wrote:Boris Boyka wrote:Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance. Stop giving out such devious ideas Hahaha thats what will be done Is the cbr rate flat? Bs Is it not? They try this nonsense, they get sorted by mps. Coop bank has complied the sharks are reluctant. You know them by their deeds. Sharks That move by COOP is gold medal material.. Expect mass buyouts from laggard banks.. First mover advantage. Long live Gideon CBR is fixed aint it? So why not fix this new loan? All banks are out to make a profit. Reducing balance kitu gani.  you shall know them by their words. IMHO you're one person that can tramp the poor as long as you get rich Just because you have stake in banks you want Kenyans to be Milked dry? Your day will come in another sector. I doubt CBR is fixed rate. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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sparkly wrote:MaichBlack wrote:sparkly wrote:14% is still too high.
I know people with mortgages at 3%, yes in Kenya and yes from the same same banks. This is money from the employer not the bank. Like GOK gives select banks money for onward lending to civil servants and the interest is actually a service fee to the Bank. Just like Helb. Fanya homework my friend. Banks also give cheap loans to their employee but in that case they are acting as an employer. Heck, the rest of us give our employees loans at 0%. Like when your house girl or shamba boy wants a 2,000/= loan. Do we use those rates in this argument??? What are you disputing? That 14.5℅ is high or there are people with 3℅ mortgages? Anyway Jifurahishe my friend. I know you are desperate to score a point after running your mouth all over Wazua how the Bill could not be signed. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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obiero wrote:newfarer wrote:murchr wrote:newfarer wrote:watesh wrote:obiero wrote:Boris Boyka wrote:Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance. Stop giving out such devious ideas Hahaha thats what will be done Is the cbr rate flat? Bs Is it not? They try this nonsense, they get sorted by mps. Coop bank has complied the sharks are reluctant. You know them by their deeds. Sharks That move by COOP is gold medal material.. Expect mass buyouts from laggard banks.. First mover advantage. Long live Gideon That threat of credit squeeze we have been told over and over was dead on arrival. I thought coop was doing PR but a friend who works there tells me they have already released new schedules for unsecured personal loans. Their sales guys are out selling unsecured personal loans at 14.5% ncluding buy-offs from other banks.They aren't waiting for the bill to be gazetted. And this is the 2nd largest bank in assets and customer deposits. From what I hear, coop believe this is their best chance to beat member. Remember they have a bigger loan book than member but equity outperforms them in profitability.
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:Banks will sail strong through this one.. As late as Oct 2015 banks offered upto 21‰ interest on FDR with onward lending at 24%.. The law now supports a wider spread based on current CBR.. i.e 7% for deposits and 14% on debt.. Classification of the category client to qualify for 70% on CBR remains the only elephant in the room That elephant of client classification to qualify for 70%CBR is a yardstick likely to ignite fierce competition for deposits in banking industry. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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Spikes wrote:obiero wrote:Banks will sail strong through this one.. As late as Oct 2015 banks offered upto 21‰ interest on FDR with onward lending at 24%.. The law now supports a wider spread based on current CBR.. i.e 7% for deposits and 14% on debt.. Classification of the category client to qualify for 70% on CBR remains the only elephant in the room That elephant of client classification to qualify for 70%CBR is a yardstick likely to ignite fierce competition for deposits in banking industry. That one is subject to abuse. Honestly even mwananchi isn't expecting 7% on the KES 2,000 or so in the bank.. Lending rate is the determinant, not interest paid on deposits.. Its calculation alone would be a nightmare and prone to mischief
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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Forwarded as received; KCB MPESA wrote:Dear Customer, KCB M-PESA Soft loan is now Available at 0.5% interest as from Ksh50,000 to 250,000 if intrested Call or text: 0780006999 for more information. Many small timers already left out!  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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