Wazua
»
Investor
»
Economy
»
Law Capping interest rates
Rank: Elder Joined: 7/26/2007 Posts: 6,514
|
obiero wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:CBK giving zero direction in this matter.
How can a 1 year loan and a 7 year loan both cost 14.5%?
Also, what is the formula to calculate CBR or is it an arbitrary rate? The 14.5 percent is per annum.. Nothing confused about CBK on the matter So yield curve is flat regardless of tenor? Yes. It is, though on reducing balance. Plus the CBR is subject to fluctuations. So in year 1 one may pay 14.5 but in year 2 the same could change to 23 percent. It's now in the hands of government How is CBR calculated? Business opportunities are like buses,there's always another one coming
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
KulaRaha wrote:obiero wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:CBK giving zero direction in this matter.
How can a 1 year loan and a 7 year loan both cost 14.5%?
Also, what is the formula to calculate CBR or is it an arbitrary rate? The 14.5 percent is per annum.. Nothing confused about CBK on the matter So yield curve is flat regardless of tenor? Yes. It is, though on reducing balance. Plus the CBR is subject to fluctuations. So in year 1 one may pay 14.5 but in year 2 the same could change to 23 percent. It's now in the hands of government How is CBR calculated? Policy issue. Fixed by CBK not calculated. Life is short. Live passionately.
|
|
|
Rank: Elder Joined: 7/26/2007 Posts: 6,514
|
sparkly wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:CBK giving zero direction in this matter.
How can a 1 year loan and a 7 year loan both cost 14.5%?
Also, what is the formula to calculate CBR or is it an arbitrary rate? The 14.5 percent is per annum.. Nothing confused about CBK on the matter So yield curve is flat regardless of tenor? Yes. It is, though on reducing balance. Plus the CBR is subject to fluctuations. So in year 1 one may pay 14.5 but in year 2 the same could change to 23 percent. It's now in the hands of government How is CBR calculated? Policy issue. Fixed by CBK not calculated. How nice...can be set at any rate to push agendas.... Business opportunities are like buses,there's always another one coming
|
|
|
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
|
obiero wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:CBK giving zero direction in this matter.
How can a 1 year loan and a 7 year loan both cost 14.5%?
Also, what is the formula to calculate CBR or is it an arbitrary rate? The 14.5 percent is per annum.. Nothing confused about CBK on the matter So yield curve is flat regardless of tenor? Yes. It is, though on reducing balance. Ideally longer tenors should have higher rates but this shall be where banks will punish consumers by maxing all product lines at the very top. Plus the CBR is subject to fluctuations. So in year 1 one may pay 14.5 but in year 2 the same could change to 23 percent. It's now in the hands of government Banks won't punish anyone.... possunt quia posse videntur
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
|
maka wrote:obiero wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:CBK giving zero direction in this matter.
How can a 1 year loan and a 7 year loan both cost 14.5%?
Also, what is the formula to calculate CBR or is it an arbitrary rate? The 14.5 percent is per annum.. Nothing confused about CBK on the matter So yield curve is flat regardless of tenor? Yes. It is, though on reducing balance. Ideally longer tenors should have higher rates but this shall be where banks will punish consumers by maxing all product lines at the very top. Plus the CBR is subject to fluctuations. So in year 1 one may pay 14.5 but in year 2 the same could change to 23 percent. It's now in the hands of government Banks won't punish anyone.... How fair is it for a TSC worker to pay the same rate as a tenderpreneur. Banks to embrace the spirit of the law would need to charge lows of 12.5 percent to lower risk segments. Anything other than that shall be punishment of consumers
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
|
Kcb and equity have found a new trading range "Don't let the fear of losing be greater than the excitement of winning."
|
|
|
Rank: Chief Joined: 5/9/2007 Posts: 13,095
|
|
|
|
Rank: Elder Joined: 7/23/2008 Posts: 3,017
|
obiero wrote:maka wrote:obiero wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:CBK giving zero direction in this matter.
How can a 1 year loan and a 7 year loan both cost 14.5%?
Also, what is the formula to calculate CBR or is it an arbitrary rate? The 14.5 percent is per annum.. Nothing confused about CBK on the matter So yield curve is flat regardless of tenor? Yes. It is, though on reducing balance. Ideally longer tenors should have higher rates but this shall be where banks will punish consumers by maxing all product lines at the very top. Plus the CBR is subject to fluctuations. So in year 1 one may pay 14.5 but in year 2 the same could change to 23 percent. It's now in the hands of government Banks won't punish anyone.... How fair is it for a TSC worker to pay the same rate as a tenderpreneur. Banks to embrace the spirit of the law would need to charge lows of 12.5 percent to lower risk segments. Anything other than that shall be punishment of consumers Lets not confuse the rate ceiling with the rate, banks should even lend at the CBR rate of 10.5% if your credit rating is as good as GOK, or less if better than GOK "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
|
|
|
Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
|
obiero wrote:KulaRaha wrote:CBK giving zero direction in this matter.
How can a 1 year loan and a 7 year loan both cost 14.5%?
Also, what is the formula to calculate CBR or is it an arbitrary rate? The 14.5 percent is per annum.. Nothing confused about CBK on the matter In fact if the banks so wish, they can price the 1 year loan at 14.5% and the 7 year loan at 111%...who cares if they want some difference? LOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOL Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
|
|
|
Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
|
Blackmail, Sawa let them pay the 7% on my Wanjiku deposits ,vampires punda amecheka
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
|
Obi 1 Kanobi wrote:obiero wrote:maka wrote:obiero wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:CBK giving zero direction in this matter.
How can a 1 year loan and a 7 year loan both cost 14.5%?
Also, what is the formula to calculate CBR or is it an arbitrary rate? The 14.5 percent is per annum.. Nothing confused about CBK on the matter So yield curve is flat regardless of tenor? Yes. It is, though on reducing balance. Ideally longer tenors should have higher rates but this shall be where banks will punish consumers by maxing all product lines at the very top. Plus the CBR is subject to fluctuations. So in year 1 one may pay 14.5 but in year 2 the same could change to 23 percent. It's now in the hands of government Banks won't punish anyone.... How fair is it for a TSC worker to pay the same rate as a tenderpreneur. Banks to embrace the spirit of the law would need to charge lows of 12.5 percent to lower risk segments. Anything other than that shall be punishment of consumers Lets not confuse the rate ceiling with the rate, banks should even lend at the CBR rate of 10.5% if your credit rating is as good as GOK, or less if better than GOK That is the ideal but we all know in reality that getting a rate lower than 14.5 will be tough except for large corporates
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Elder Joined: 11/5/2010 Posts: 2,459
|
newfarer wrote:Blackmail, Sawa let them pay the 7% on my Wanjiku deposits ,vampires Within an year, they will be out of tier 1 category. What has shocked me are the antics of one of the tier 1 banks telling staff to quote rates of 14.5% flat. Their own staff can't believe their employer could be up to such shenanigans. 14.5% flat rate is equivalent to 28% reducing balance. Said bank has advised staff not to give their customers the APR disclosure form.
|
|
|
Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
|
Why are some of these guys so scared by this thing called capping.
When don't they run what they call in computing a dry run and see the actual effects with all factors considered and then they can have a nice night sleep.
|
|
|
Rank: Elder Joined: 12/7/2012 Posts: 11,908
|
FRM2011 wrote:newfarer wrote:Blackmail, Sawa let them pay the 7% on my Wanjiku deposits ,vampires Within an year, they will be out of tier 1 category. What has shocked me are the antics of one of the tier 1 banks telling staff to quote rates of 14.5% flat. Their own staff can't believe their employer could be up to such shenanigans. 14.5% flat rate is equivalent to 28% reducing balance. Said bank has advised staff not to give their customers the APR disclosure form. Name names, siogope  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
|
|
|
Rank: Chief Joined: 5/9/2007 Posts: 13,095
|
FRM2011 wrote:newfarer wrote:Blackmail, Sawa let them pay the 7% on my Wanjiku deposits ,vampires Within an year, they will be out of tier 1 category. What has shocked me are the antics of one of the tier 1 banks telling staff to quote rates of 14.5% flat. Their own staff can't believe their employer could be up to such shenanigans. 14.5% flat rate is equivalent to 28% reducing balance. Said bank has advised staff not to give their customers the APR disclosure form. Which one?
|
|
|
Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
|
washiku wrote:FRM2011 wrote:newfarer wrote:Blackmail, Sawa let them pay the 7% on my Wanjiku deposits ,vampires Within an year, they will be out of tier 1 category. What has shocked me are the antics of one of the tier 1 banks telling staff to quote rates of 14.5% flat. Their own staff can't believe their employer could be up to such shenanigans. 14.5% flat rate is equivalent to 28% reducing balance. Said bank has advised staff not to give their customers the APR disclosure form. Which one? Toboa siri
|
|
|
Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
|
anxious to know For investors as a whole, returns decrease as motion increases ~ WB
|
|
|
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
|
FRM2011 wrote:newfarer wrote:Blackmail, Sawa let them pay the 7% on my Wanjiku deposits ,vampires Within an year, they will be out of tier 1 category. What has shocked me are the antics of one of the tier 1 banks telling staff to quote rates of 14.5% flat. Their own staff can't believe their employer could be up to such shenanigans. 14.5% flat rate is equivalent to 28% reducing balance. Said bank has advised staff not to give their customers the APR disclosure form. Does any law in Kenya force reducing balance loan amortization on Banks Mark 12:29
Deuteronomy 4:16
|
|
|
Rank: Elder Joined: 11/5/2010 Posts: 2,459
|
guru267 wrote:FRM2011 wrote:newfarer wrote:Blackmail, Sawa let them pay the 7% on my Wanjiku deposits ,vampires Within an year, they will be out of tier 1 category. What has shocked me are the antics of one of the tier 1 banks telling staff to quote rates of 14.5% flat. Their own staff can't believe their employer could be up to such shenanigans. 14.5% flat rate is equivalent to 28% reducing balance. Said bank has advised staff not to give their customers the APR disclosure form. Does any law in Kenya force reducing balance loan amortization on Banks No, but there is a very clear cbk prudential guideline since 2014 on mandatory disclosures which include total cost of credit and APR. Should a lender opt to quote their rates as flat rates, the same must be converted to the equivalent in the APR. It's turning out the above lender was testing waters but their own credit officers are not comfortable. They have already leaked the info. Let's wait up to 14th Sept. If they dare disburse a single loan at 14.5% flat, then we will have a bank CEO at Kamiti.
|
|
|
Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
|
http://www.nation.co.ke/...370094-myqaeu/index.html"Don't let the fear of losing be greater than the excitement of winning."
|
|
|
Wazua
»
Investor
»
Economy
»
Law Capping interest rates
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|