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Law Capping interest rates
Rank: Elder Joined: 6/23/2009 Posts: 14,353 Location: nairobi
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Rawsinvestor wrote:I think this is a question of supply and demand. I think the banks are currently working with what they have in their loan book and carefully given out cash to people they consider less risky. They may not be able to sustain the same without going back to the customer.
When Credit becomes hard to get for the Normal mwananchi, they will develop a means to survive. Some will grow financially and eventually refuse to take credit all together. It just a matter of time before the banks comes begging for people to take Credit. Kenyan banking as it was known has changed, let us accept and move on.. Lower returns are assured plus continued consolidation. Only buy the top 5 banks if you must COOP, IMH, KEGN, MTNU
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Rank: Elder Joined: 6/23/2009 Posts: 14,353 Location: nairobi
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whiteowl wrote:obiero wrote:obiero wrote: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 The goose is cooked for NBK NBK has 9 lives,it was supposed to go down even before Dubai bank but its still standing. @whiteowl NBK in its current form and shape cannot survive.. It must be absorbed by a real bank. Smaller banks must close shop unless the caps are reversed http://www.nation.co.ke/...79774-14pykoy/index.html COOP, IMH, KEGN, MTNU
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Rank: Member Joined: 10/28/2008 Posts: 41
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Capping in a free market...LOL. Just as was predicted, small banks folding up with accompanying job losses. It would be laughable were it not so sad. 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: 14,353 Location: nairobi
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KNM wrote:Capping in a free market...LOL. Just as was predicted, small banks folding up with accompanying job losses. It would be laughable were it not so sad. True. There was need to reign in the rogue banks, but what was done has turned out to be drastic COOP, IMH, KEGN, MTNU
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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KNM wrote:Capping in a free market...LOL. Just as was predicted, small banks folding up with accompanying job losses. It would be laughable were it not so sad. Which smaller banks have folded? What I see is more of; 1. investors who went into banking for short term gains selling and leaving 2. And banks with poor management and inefficiencies (like NBK) suffering because they are unable to transfer their inefficiencies to poor borrowers through expensive high interest loans "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Elder Joined: 6/23/2009 Posts: 14,353 Location: nairobi
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Obi 1 Kanobi wrote:KNM wrote:Capping in a free market...LOL. Just as was predicted, small banks folding up with accompanying job losses. It would be laughable were it not so sad. Which smaller banks have folded? What I see is more of; 1. investors who went into banking for short term gains selling and leaving 2. And banks with poor management and inefficiencies (like NBK) suffering because they are unable to transfer their inefficiencies to poor borrowers through expensive high interest loans Where have you been dude? Giro, Habib.. COOP, IMH, KEGN, MTNU
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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obiero wrote:Obi 1 Kanobi wrote:KNM wrote:Capping in a free market...LOL. Just as was predicted, small banks folding up with accompanying job losses. It would be laughable were it not so sad. Which smaller banks have folded? What I see is more of; 1. investors who went into banking for short term gains selling and leaving 2. And banks with poor management and inefficiencies (like NBK) suffering because they are unable to transfer their inefficiencies to poor borrowers through expensive high interest loans Where have you been dude? Giro, Habib.. That list will grow in the next few months. possunt quia posse videntur
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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obiero wrote:Obi 1 Kanobi wrote:KNM wrote:Capping in a free market...LOL. Just as was predicted, small banks folding up with accompanying job losses. It would be laughable were it not so sad. Which smaller banks have folded? What I see is more of; 1. investors who went into banking for short term gains selling and leaving 2. And banks with poor management and inefficiencies (like NBK) suffering because they are unable to transfer their inefficiencies to poor borrowers through expensive high interest loans Where have you been dude? Giro, Habib.. The Giro;I&M Deal started may be 2 years before interest rate capping was done and if I am right also concluded before the capping. Habib Bank also sold out in principle before capping. If you dig deeper, you will realise that for both these banks, the owners wanted to make their investments more liquid by merging with listed banks, i.e I&M and DTB. @Obiero, you spend alot of time in the investment section, the least you could do is research more so you write facts. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Elder Joined: 9/15/2006 Posts: 3,908
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KNM wrote:Capping in a free market...LOL. Just as was predicted, small banks folding up with accompanying job losses. It would be laughable were it not so sad. What is this free market that has banks gaping like vultures over live mwananchi finances? Why do they have to retrench, reclassify loans, digitize etc, if they were doing such a good job in a truly competitive market? Mwananchi should not pay for all that inefficiency 
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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muganda wrote:KNM wrote:Capping in a free market...LOL. Just as was predicted, small banks folding up with accompanying job losses. It would be laughable were it not so sad. What is this free market that has banks gaping like vultures over live mwananchi finances?Why do they have to retrench, reclassify loans, digitize etc, if they were doing such a good job in a truly competitive market? Mwananchi should not pay for all that inefficiency A term often abused by people who want to justify excessive profits. Example is it a free market if farmers are blocked from selling their cabbages at Wakulima market by illegal middlemen who set prices through collusion with NCC officers. That to me is how the Kenyan banking industry was prior to capping. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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