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Law Capping interest rates
Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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wukan wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:At 12.9% kcb and co are doomed. What forms the basis of your judgement. Kenyan banks could lend at 5% and still make a profit.. It all depends on cost of funds.. Recalibration of the accounts that qualify for the minimum of 70% on CBR shall determine which bank thrives.. COOP via the SACCO movement remains the best bet to ride this wave With a gross spread of 6% and npls higher, how will they earn a profit? The aim is to maintain the market share so for a while the profit motive takes a chill. I would bet Equity would come at 12% and effectively wipe out the Sacco movement's value proposition. Why would anyone borrow their own money at 12% when you can get it from the bank? I would expect Sacco deposits will shrink so Coop would the worst bus @wakun you have a point I had not seen coming. but it will take some time for the echo's to make rounds. though and simply stated banks are having a Molotov cocktail in their menu and am not ready to dine with them. imagine kbbr at 6.5% that would make it 10.5% for the banks. I would borrow for the first time in my life a secured loan to setup my fourth small production industry without looking over my shoulder's. let the whipping continue. ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
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muandiwambeu wrote:wukan wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:At 12.9% kcb and co are doomed. What forms the basis of your judgement. Kenyan banks could lend at 5% and still make a profit.. It all depends on cost of funds.. Recalibration of the accounts that qualify for the minimum of 70% on CBR shall determine which bank thrives.. COOP via the SACCO movement remains the best bet to ride this wave With a gross spread of 6% and npls higher, how will they earn a profit? The aim is to maintain the market share so for a while the profit motive takes a chill. I would bet Equity would come at 12% and effectively wipe out the Sacco movement's value proposition. Why would anyone borrow their own money at 12% when you can get it from the bank? I would expect Sacco deposits will shrink so Coop would the worst bus @wakun you have a point I had not seen coming. but it will take some time for the echo's to make rounds. though and simply stated banks are having a Molotov cocktail in their menu and am not ready to dine with them. imagine kbbr at 6.5% that would make it 10.5% for the banks. I would borrow for the first time in my life a secured loan to setup my fourth small production industry without looking over my shoulder's. let the whipping continue. Banks have a lot of say in the financial agenda for the country.. If the banks needed to move the rates up, they could do it.. Plus negotiation fee cannot be capped so the banks can raise appraisal fee to 5% per loan, chargeable annually..
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 8/17/2011 Posts: 207 Location: humu humu
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obiero wrote:muandiwambeu wrote:wukan wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:At 12.9% kcb and co are doomed. What forms the basis of your judgement. Kenyan banks could lend at 5% and still make a profit.. It all depends on cost of funds.. Recalibration of the accounts that qualify for the minimum of 70% on CBR shall determine which bank thrives.. COOP via the SACCO movement remains the best bet to ride this wave With a gross spread of 6% and npls higher, how will they earn a profit? The aim is to maintain the market share so for a while the profit motive takes a chill. I would bet Equity would come at 12% and effectively wipe out the Sacco movement's value proposition. Why would anyone borrow their own money at 12% when you can get it from the bank? I would expect Sacco deposits will shrink so Coop would the worst bus @wakun you have a point I had not seen coming. but it will take some time for the echo's to make rounds. though and simply stated banks are having a Molotov cocktail in their menu and am not ready to dine with them. imagine kbbr at 6.5% that would make it 10.5% for the banks. I would borrow for the first time in my life a secured loan to setup my fourth small production industry without looking over my shoulder's. let the whipping continue. Banks have a lot of say in the financial agenda for the country.. If the banks needed to move the rates up, they could do it.. Plus negotiation fee cannot be capped so the banks can raise appraisal fee to 5% per loan, chargeable annually.. Any fee increment is being monitored by cbk. The cbk recently instructed banks to remove "nuisance" fees like bank closing charges. banks like coop were sending sms threatening to list customers in credit bureaus as defaulters coz of silly charges which arent loans! Again customers will vote with their feet/money and migrate to friendlier banks.
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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kaifastus wrote:obiero wrote:muandiwambeu wrote:wukan wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:At 12.9% kcb and co are doomed. What forms the basis of your judgement. Kenyan banks could lend at 5% and still make a profit.. It all depends on cost of funds.. Recalibration of the accounts that qualify for the minimum of 70% on CBR shall determine which bank thrives.. COOP via the SACCO movement remains the best bet to ride this wave With a gross spread of 6% and npls higher, how will they earn a profit? The aim is to maintain the market share so for a while the profit motive takes a chill. I would bet Equity would come at 12% and effectively wipe out the Sacco movement's value proposition. Why would anyone borrow their own money at 12% when you can get it from the bank? I would expect Sacco deposits will shrink so Coop would the worst bus @wakun you have a point I had not seen coming. but it will take some time for the echo's to make rounds. though and simply stated banks are having a Molotov cocktail in their menu and am not ready to dine with them. imagine kbbr at 6.5% that would make it 10.5% for the banks. I would borrow for the first time in my life a secured loan to setup my fourth small production industry without looking over my shoulder's. let the whipping continue. Banks have a lot of say in the financial agenda for the country.. If the banks needed to move the rates up, they could do it.. Plus negotiation fee cannot be capped so the banks can raise appraisal fee to 5% per loan, chargeable annually.. Any fee increment is being monitored by cbk. The cbk recently instructed banks to remove "nuisance" fees like bank closing charges. banks like coop were sending sms threatening to list customers in credit bureaus as defaulters coz of silly charges which arent loans! Again customers will vote with their feet/money and migrate to friendlier banks. The law can be amended to also cap the fees...kwani iko nini? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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Is it true CBK has advised use of KBBR
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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streetwise wrote:Is it true CBK has advised use of KBBR I have not heard...nothing on their twirra handle too. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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http://www.businessdaily...377426-fos5lr/index.htmlWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 2/20/2007 Posts: 767
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tom_boy wrote:obiero wrote:maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:[quote=maka]Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. 91, 182, 364 day bills all down.. Expect the shorter tenor to hit 6.5% by December.. As per Graham's law, the bulls at the NSE must show up shortly.. http://www.businessdaily...4800-b0eb44z/index.html[/quote] As per my predictions, the dance between banks and Government in pricing billsand bonds has begun. Banks cannot afford to flood CBK with offers! They will have to worksmart. 50% haircut on banks profits coming soon. Coop, KCB, Equity will be hardest hit. They can no longer fleece wanjiku, T bill rates coming down and cost of deposits has gone up. Sub 20sh is on the way for Equity and KCB, and you can take that to the bank.  They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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I think this thing as as bout Gova getting cheaper money.
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Rank: Member Joined: 2/20/2007 Posts: 767
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streetwise wrote:I think this thing as as bout Gova getting cheaper money. The government is you and I ....... or so I was taught in primary school. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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Impunity wrote:kaifastus wrote:obiero wrote:muandiwambeu wrote:wukan wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:At 12.9% kcb and co are doomed. What forms the basis of your judgement. Kenyan banks could lend at 5% and still make a profit.. It all depends on cost of funds.. Recalibration of the accounts that qualify for the minimum of 70% on CBR shall determine which bank thrives.. COOP via the SACCO movement remains the best bet to ride this wave With a gross spread of 6% and npls higher, how will they earn a profit? The aim is to maintain the market share so for a while the profit motive takes a chill. I would bet Equity would come at 12% and effectively wipe out the Sacco movement's value proposition. Why would anyone borrow their own money at 12% when you can get it from the bank? I would expect Sacco deposits will shrink so Coop would the worst bus @wakun you have a point I had not seen coming. but it will take some time for the echo's to make rounds. though and simply stated banks are having a Molotov cocktail in their menu and am not ready to dine with them. imagine kbbr at 6.5% that would make it 10.5% for the banks. I would borrow for the first time in my life a secured loan to setup my fourth small production industry without looking over my shoulder's. let the whipping continue. Banks have a lot of say in the financial agenda for the country.. If the banks needed to move the rates up, they could do it.. Plus negotiation fee cannot be capped so the banks can raise appraisal fee to 5% per loan, chargeable annually.. Any fee increment is being monitored by cbk. The cbk recently instructed banks to remove "nuisance" fees like bank closing charges. banks like coop were sending sms threatening to list customers in credit bureaus as defaulters coz of silly charges which arent loans! Again customers will vote with their feet/money and migrate to friendlier banks. The law can be amended to also cap the fees...kwani iko nini? processing fee is a professional charge or commission and there exists guidelines to regulate them already ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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muandiwambeu wrote:Impunity wrote:kaifastus wrote:obiero wrote:muandiwambeu wrote:wukan wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:At 12.9% kcb and co are doomed. What forms the basis of your judgement. Kenyan banks could lend at 5% and still make a profit.. It all depends on cost of funds.. Recalibration of the accounts that qualify for the minimum of 70% on CBR shall determine which bank thrives.. COOP via the SACCO movement remains the best bet to ride this wave With a gross spread of 6% and npls higher, how will they earn a profit? The aim is to maintain the market share so for a while the profit motive takes a chill. I would bet Equity would come at 12% and effectively wipe out the Sacco movement's value proposition. Why would anyone borrow their own money at 12% when you can get it from the bank? I would expect Sacco deposits will shrink so Coop would the worst bus @wakun you have a point I had not seen coming. but it will take some time for the echo's to make rounds. though and simply stated banks are having a Molotov cocktail in their menu and am not ready to dine with them. imagine kbbr at 6.5% that would make it 10.5% for the banks. I would borrow for the first time in my life a secured loan to setup my fourth small production industry without looking over my shoulder's. let the whipping continue. Banks have a lot of say in the financial agenda for the country.. If the banks needed to move the rates up, they could do it.. Plus negotiation fee cannot be capped so the banks can raise appraisal fee to 5% per loan, chargeable annually.. Any fee increment is being monitored by cbk. The cbk recently instructed banks to remove "nuisance" fees like bank closing charges. banks like coop were sending sms threatening to list customers in credit bureaus as defaulters coz of silly charges which arent loans! Again customers will vote with their feet/money and migrate to friendlier banks. The law can be amended to also cap the fees...kwani iko nini? processing fee is a professional charge or commission and there exists guidelines to regulate them already Those guidelines can be abused and so we will regulate them further. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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I'm waiting to hear the banks give statistics of how many people they have given loans so far at 14.5% or 12.9% Otherwise these are PR gimmicks at play Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 9/11/2014 Posts: 228 Location: Nairobi
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tom_boy wrote:streetwise wrote:I think this thing as as bout Gova getting cheaper money. The government is you and I ....... or so I was taught in primary school. No doubt you were also taught: "Zamani tuliwekwa eti namba four Sasa abautani tuko namba wani"
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Rank: New-farer Joined: 2/14/2015 Posts: 97 Location: Kenya
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Any news from Equity Bank and Housing Finance as to when they will implenent the new lending rates? If so, what rates are they quoting? Finally the end outrageous lending rates!!
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Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
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Xymalos wrote:Any news from Equity Bank and Housing Finance as to when they will implenent the new lending rates? If so, what rates are they quoting? Finally the end outrageous lending rates!! The bill has not been gazetted so the two can milk this to the last cent.. It is a gamble but it may pay off
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 11/2/2006 Posts: 1,206 Location: Nairobi
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obiero wrote:Xymalos wrote:Any news from Equity Bank and Housing Finance as to when they will implenent the new lending rates? If so, what rates are they quoting? Finally the end outrageous lending rates!! The bill has not been gazetted so the two can milk this to the last cent.. It is a gamble but it may pay off Banks cannot fight CBK.Last I checked last week, HFCK was trying to comply and set loan rates at 14.5%. All the same, CBK is failing big time. They need to come out clearly on whether its KBRR or CBR. Formally employed people often live their employers' dream & forget about their own.
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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That's why we need an independent financial system divorced from politics. If you look at USA the monetary policy by the Federal Reserve is the 4th arm of the government therefore politics aside. Here in Kenya decisions are being made with the aim of winning the 2017 General elections. Like someone said,stay out of stocks/equities till October 2017 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Ericsson wrote:That's why we need an independent financial system divorced from politics.
If you look at USA the monetary policy by the Federal Reserve is the 4th arm of the government therefore politics aside.
Here in Kenya decisions are being made with the aim of winning the 2017 General elections.
Like someone said,stay out of stocks/equities till October 2017 Thats the kind of poltics we love...na hii ndio malipo,they really dont care. possunt quia posse videntur
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Rank: Veteran Joined: 11/2/2006 Posts: 1,206 Location: Nairobi
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Ericsson wrote:I'm waiting to hear the banks give statistics of how many people they have given loans so far at 14.5% or 12.9%
Otherwise these are PR gimmicks at play I'd also love to see such.If you force all rates at 14.5% despite Banks having insufficient data and lazy scoring models,credit will be witheld for smaller and SME borrowers.Lets watch. Otherwise all these declarations are nothing but PR. Formally employed people often live their employers' dream & forget about their own.
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