Wazua
»
Investor
»
Economy
»
Law Capping interest rates
Rank: Elder Joined: 6/23/2009 Posts: 14,443 Location: nairobi
|
NIC becomes one more example of a struggling lender http://www.businessdaily...45670-jo884uz/index.html COOP 306,100 ABP 31.96, KEGN 112,100 ABP 10.64, MTNU 131,000 ABP 10.21
|
|
|
Rank: Member Joined: 9/3/2015 Posts: 118 Location: Nairobi
|
Query: For small banks, has the rate cap lowered or raised their cost of deposits and savings? For example, looking at faulu bank, who a few ago were offering upto 12.5% interest on funds deposited with them in a savings account for a duration of 3 years, I presume currently that they more or less have the same amount as other banks for deposits and savings.
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 14,443 Location: nairobi
|
Musimo wrote:Query: For small banks, has the rate cap lowered or raised their cost of deposits and savings? For example, looking at faulu bank, who a few ago were offering upto 12.5% interest on funds deposited with them in a savings account for a duration of 3 years, I presume currently that they more or less have the same amount as other banks for deposits and savings. The issue is that of trust.. Most sensible clients will opt for say 7% at a large bank than risk it all at 8% on a smaller bank COOP 306,100 ABP 31.96, KEGN 112,100 ABP 10.64, MTNU 131,000 ABP 10.21
|
|
|
Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
|
|
|
|
Rank: Veteran Joined: 11/13/2015 Posts: 1,658
|
Quote:Family Bank has posted a Sh259.57 million after-tax loss for the first three months of the year, citing a sharp rise in bad loans and the interest rate cap which ate into its profitability.
Gross non-performing loans jumped 92.14 per cent or Sh3.98 billion to Sh8.3 billion. Sidian bank reports a loss of Shs 79.2 million. Malenge ni mboga, ama namna gani?
|
|
|
Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
|
wukan wrote:Quote:Family Bank has posted a Sh259.57 million after-tax loss for the first three months of the year, citing a sharp rise in bad loans and the interest rate cap which ate into its profitability.
Gross non-performing loans jumped 92.14 per cent or Sh3.98 billion to Sh8.3 billion. Sidian bank reports a loss of Shs 79.2 million. Malenge ni mboga, ama namna gani? they should be careful not to cause customer panic "Don't let the fear of losing be greater than the excitement of winning."
|
|
|
Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
|
mlennyma wrote:wukan wrote:Quote:Family Bank has posted a Sh259.57 million after-tax loss for the first three months of the year, citing a sharp rise in bad loans and the interest rate cap which ate into its profitability.
Gross non-performing loans jumped 92.14 per cent or Sh3.98 billion to Sh8.3 billion. Sidian bank reports a loss of Shs 79.2 million. Malenge ni mboga, ama namna gani? they should be careful not to cause customer panic That could be a good thing in disguise. Forcing some review of the cap.
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 14,443 Location: nairobi
|
obiero wrote:obiero wrote:obiero wrote:obiero wrote:sparkly wrote:obiero wrote:MaichBlack wrote:obiero wrote:[quote=muandiwambeu][quote=Ebenyo][quote=obiero]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. Smaller banks will fold Here we are... Family fires it's staff https://citizentv.co.ke/...fs-to-cut-costs-143841/
and then Sidian lays off 108 workers http://www.businessdaily...9550-3428588-151f209z/, then Ecobank collapses 9 branches http://www.businessdaily...6506-316lohz/index.html
First Community Bank let go of a quarter of its staff http://www.the-star.co.k...osed-number-of_c1451638
And now BoA closes 12 branches. Sad state of affairs http://www.businessdaily...2926-jp394sz/index.html[/quote] Sidian, NBK, Family, HF, NIC struggling.. Small banks shall fold COOP 306,100 ABP 31.96, KEGN 112,100 ABP 10.64, MTNU 131,000 ABP 10.21
|
|
|
Rank: Elder Joined: 7/23/2008 Posts: 3,017
|
The reality of the interest rates caps is finally coming out. According to CBK latest data, rates cap will be good for the economy in the medium term. Check out the latest East African paper. Can't find link online though. Equity is also reverting to robust lending The sky is falling brigade please read and calm down, the cap stays on. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
|
|
|
Rank: Veteran Joined: 10/29/2008 Posts: 1,566
|
Obi 1 Kanobi wrote:The reality of the interest rates caps is finally coming out. According to CBK latest data, rates cap will be good for the economy in the medium term.
Check out the latest East African paper. Can't find link online though.
Equity is also reverting to robust lending
The sky is falling brigade please read and calm down, the cap stays on.  Isuni yilu yi maa me muyo - ni Mbisuu
|
|
|
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.
|