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Is Equity a political bank?
mukiha
#1 Posted : Monday, May 17, 2010 8:20:00 AM
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Joined: 6/27/2008
Posts: 4,114
@fellifel; please post your comments here.

@wazuans; if you are wondering where this came from, see here: http://wazua.co.ke/forum...sts&t=6968#post78439
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
mlefu
#2 Posted : Monday, May 17, 2010 8:29:01 AM
Rank: Elder

Joined: 2/11/2007
Posts: 1,680
Location: nairobi
Quote:
money is worthless unless you spend it.
Applause
the deal
#3 Posted : Monday, May 17, 2010 8:49:58 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
@mukiha everything is political in Kenya even my fellow stdnts @ U.O.N are politlcal...taking to the streets lyk thaaat...
mozenrat
#4 Posted : Monday, May 17, 2010 9:03:26 AM
Rank: Veteran

Joined: 5/18/2008
Posts: 796
Surely if everything is political, is there any value to stating that "fact"... @fellifel put accross this statement as if being political is a characteristic unique to EB...
malimingi
#5 Posted : Monday, May 17, 2010 10:01:15 AM
Rank: Member

Joined: 9/4/2009
Posts: 89
of course everything in life is political - even the debate on abortion!! but if you mean that Equity is propped up by political figures you couldnt be more wrong - just read the history of the Bank, its humble beginnings and the fact that it has never relied on deposits from or lendings to parastatals - this is what characterised the 'political' banks of the 1990s.
fellifel
#6 Posted : Monday, May 17, 2010 10:11:23 AM
Rank: New-farer

Joined: 5/16/2010
Posts: 14
Location: Nairobi
To start with, it might be fortunate or unfortunate how equity bank might have turned the face of banking in this country, but it leaves questions to be asked. The fact that equity is doing big is because of backing from the topmost authority in the country, with government funding passing through the bank, Youth development fund, women devlopment funds.
The expansion rate for the bank leaves so much to be suspected.If in doubt, ask yourself why banks that have been around for quite a while like the Co-operative Bank have not had such expansion rates despite mainly catering for the low income earners. In short, this is a classic case of a pyramid scheme, only these time, its on a large scale. For the price of a share to shoot to an all time high for a company that has been on the stock exchange for less than a year leaves a lot to be desired. Since there inception till now they may have changed there strategy but with the sort of returns and basing on there asset value, the bank is on a ride that is too good to be true. Now change of regime may not affect it much but it will affect it.
Scubidu
#7 Posted : Monday, May 17, 2010 10:23:56 AM
Rank: Veteran

Joined: 9/4/2009
Posts: 700
Location: Nairobi
@fellifel. I think it's quite easy for a bank to grow as fast as Equity has...all the conditions were right, some pieces fell in just the right time & place. If u take the political spin I think you should focus on who Helios EB investors are, the major shareholder, becoz they were the main catalyst to Equity's success.
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
FundamentAli
#8 Posted : Monday, May 17, 2010 10:38:53 AM
Rank: Veteran

Joined: 11/4/2008
Posts: 1,289
Location: Nairobi
@fellifel

Have you asked yourself why the development funds are passing through Equity? There is no other bank that has been supportive of the SME than Equity. They lend to them. They could have gotten the nod to handle the funds purely on merit. They understand the target better than the other banks who at their best had turned their back against ordinary kenyans.
mukiha
#9 Posted : Monday, May 17, 2010 10:41:52 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
fellifel wrote:
To start with, it might be fortunate or unfortunate how equity bank might have turned the face of banking in this country, but it leaves questions to be asked. The fact that equity is doing big is because of backing from the topmost authority in the country, with government funding passing through the bank, Youth development fund, women devlopment funds.

Equity was not the only institution to get these funds, and after all, these were small amounts by equity's standards at the time.

How has "the topmost authority in the country" provided backing to Equity?


fellifel wrote:
The expansion rate for the bank leaves so much to be suspected.If in doubt, ask yourself why banks that have been around for quite a while like the Co-operative Bank have not had such expansion rates despite mainly catering for the low income earners.

Simple answer, they were not friendly to low income earners. And BTW, Co-Op was a political bank during the Moi Error. They were almost closing down at one time under the weight of loans to Moi's henchmen.

fellifel wrote:
In short, this is a classic case of a pyramid scheme, only these time, its on a large scale. For the price of a share to shoot to an all time high for a company that has been on the stock exchange for less than a year leaves a lot to be desired.


What do you mean by "all time high"? Every listed company reaches an all time high as soon as it starts trading!!! On the other hand, Equity does not hold the record for the highest price per share ever seen at the NSE. That distinction belongs to Limuru Tea, which is the only one in my memory that has crossed Sh1,000 per share point.

fellifel wrote:
Since there inception till now they may have changed there strategy but with the sort of returns and basing on there asset value, the bank is on a ride that is too good to be true. Now change of regime may not affect it much but it will affect it.

You may have a point here, that the growth is "too good"; but this has now plateaued....just like SCOM
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
sparkly
#10 Posted : Monday, May 17, 2010 10:44:54 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
fellifel wrote:
To start with, it might be fortunate or unfortunate how equity bank might have turned the face of banking in this country, but it leaves questions to be asked. The fact that equity is doing big is because of backing from the topmost authority in the country, with government funding passing through the bank, Youth development fund, women devlopment funds.
The expansion rate for the bank leaves so much to be suspected.If in doubt, ask yourself why banks that have been around for quite a while like the Co-operative Bank have not had such expansion rates despite mainly catering for the low income earners. In short, this is a classic case of a pyramid scheme, only these time, its on a large scale. For the price of a share to shoot to an all time high for a company that has been on the stock exchange for less than a year leaves a lot to be desired. Since there inception till now they may have changed there strategy but with the sort of returns and basing on there asset value, the bank is on a ride that is too good to be true. Now change of regime may not affect it much but it will affect it.


EB was the first bank to hit 1M plus customers, did those customers open accounts because it is political?

Do i bank with NIC because it is /or not political?

Who buys a product because it is political?
Life is short. Live passionately.
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