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Portfolio Balancing: Avoid Over Exposure To Financial Sector
Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Citi Report
 "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: New-farer Joined: 5/21/2013 Posts: 72 Location: KENYA
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Do you have a link to the report itself? If yes, kindly share here, or on the mailing list. “The market can remain irrational longer than you can remain solvent.” - John Maynard Keynes
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Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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https://www.businessdail...4300332-l4u0i/index.html
Kenyan banks have been given a five-year waiver from higher capital requirements in the wake of a more conservative accounting standard that took effect on January 1.
Adoption of the International Financial Reporting Standards (IFRS 9) will see banks provide for expected loan losses rather than those already incurred, reducing their profitability and eroding their capital base.
The Central Bank of Kenya (CBK) has however written to banks, notifying them that it will overlook capital shortfalls brought about by the new accounting standard.
The decision, which will allow lenders to also report their accounts as if IFRS 9 has not come into force, is meant to buy them time to bolster their capital. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Ericsson wrote:https://www.businessdailyafrica.com/corporate/companies/CBK-gives-banks-5-year-reprieve-to-raise-capital/4003102-4300332-l4u0i/index.html
Kenyan banks have been given a five-year waiver from higher capital requirements in the wake of a more conservative accounting standard that took effect on January 1.
Adoption of the International Financial Reporting Standards (IFRS 9) will see banks provide for expected loan losses rather than those already incurred, reducing their profitability and eroding their capital base.
The Central Bank of Kenya (CBK) has however written to banks, notifying them that it will overlook capital shortfalls brought about by the new accounting standard.
The decision, which will allow lenders to also report their accounts as if IFRS 9 has not come into force, is meant to buy them time to bolster their capital.
Experts weigh in on this scenario; are we headed north or south in terms share price movements. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Veteran Joined: 4/4/2016 Posts: 2,021 Location: Kitale
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Ericsson wrote:https://www.businessdailyafrica.com/corporate/companies/CBK-gives-banks-5-year-reprieve-to-raise-capital/4003102-4300332-l4u0i/index.html
Kenyan banks have been given a five-year waiver from higher capital requirements in the wake of a more conservative accounting standard that took effect on January 1.
Adoption of the International Financial Reporting Standards (IFRS 9) will see banks provide for expected loan losses rather than those already incurred, reducing their profitability and eroding their capital base.
The Central Bank of Kenya (CBK) has however written to banks, notifying them that it will overlook capital shortfalls brought about by the new accounting standard.
The decision, which will allow lenders to also report their accounts as if IFRS 9 has not come into force, is meant to buy them time to bolster their capital.
This one is good news.But it will be good for a wise bank to implement the system earlier so that at the end of the grace peod,adjustment will be easy. Towards the goal of financial freedom
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Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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State Finds Solutions for Its 3 Struggling Banks
Since 2008, the plans to merge National Bank, Consolidated Bank, and Development Bank have failed. Before the merger plans, the Privatisation Commission had submitted comprehensive proposals for the sale of National Bank and Consolidated Bank to the Treasury in accordance with the Privatisation Act. However, these plans also stalled.
Therefore, the commission has recently announced plans to restructure Consolidated Bank through a consultant. The restructuring plans are aimed at selling the government’s stake for Sh2.5 billion.
“The transaction adviser is required to prepare a restructuring and options analysis report. The work to be undertaken includes the review of the possibility of implementing a rights issue as part of the privatisation of the bank,” Jaqueline Muindi, acting CEO stated.
National Bank of Kenya could also be sold to Kenya Commercial Bank if a proposal to sell it is approved. In addition, Development Bank will be merged with the following institutions: Uwezo Fund, Kenya Industrial Estates, Women Enterprise Development Fund, Industrial Development Bank of Kenya, and Youth Enterprise Development Fund. The merger will form a large development finance institution.
The three banks have a total capital of KES13.17 billion. The government’s 50.2 percent equity in Consolidated Bank is held through Deposit Protection Fund and its 89.3 percent stake in National Bank is held through Industrial and Commercial Development Corporation. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,375 Location: Nairobi
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Ericsson wrote:State Finds Solutions for Its 3 Struggling Banks
Since 2008, the plans to merge National Bank, Consolidated Bank, and Development Bank have failed. Before the merger plans, the Privatisation Commission had submitted comprehensive proposals for the sale of National Bank and Consolidated Bank to the Treasury in accordance with the Privatisation Act. However, these plans also stalled.
Therefore, the commission has recently announced plans to restructure Consolidated Bank through a consultant. The restructuring plans are aimed at selling the government’s stake for Sh2.5 billion.
“The transaction adviser is required to prepare a restructuring and options analysis report. The work to be undertaken includes the review of the possibility of implementing a rights issue as part of the privatisation of the bank,” Jaqueline Muindi, acting CEO stated.
National Bank of Kenya could also be sold to Kenya Commercial Bank if a proposal to sell it is approved. In addition, Development Bank will be merged with the following institutions: Uwezo Fund, Kenya Industrial Estates, Women Enterprise Development Fund, Industrial Development Bank of Kenya, and Youth Enterprise Development Fund. The merger will form a large development finance institution.
The three banks have a total capital of KES13.17 billion. The government’s 50.2 percent equity in Consolidated Bank is held through Deposit Protection Fund and its 89.3 percent stake in National Bank is held through Industrial and Commercial Development Corporation.
Good. The fewer fingers GoK has in the banking industry the better.
The 2.5bn can be used to reduce debt. Not that it will be used to do so! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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https://www.businessdail...05402-ie4bo2z/index.html
Kenyan banks are not deriving value in their regional operations with subsidiaries in volatile South Sudan unlikely to stay viable due to conflict and currency woes, investment bank Renaissance Capital says. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 4/4/2016 Posts: 2,021 Location: Kitale
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Ericsson wrote:https://www.businessdailyafrica.com/markets/marketnews/Kenyan-banks--East-Africa-expansion-hits-rough-patch/3815534-4305402-ie4bo2z/index.html
Kenyan banks are not deriving value in their regional operations with subsidiaries in volatile South Sudan unlikely to stay viable due to conflict and currency woes, investment bank Renaissance Capital says.
kcb should pull out of south sudan.But pan african vision should continue only in viable countries.
Coop will do well in south sudan because of the partnership with Goss. Towards the goal of financial freedom
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Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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Ebenyo wrote:Ericsson wrote:https://www.businessdailyafrica.com/markets/marketnews/Kenyan-banks--East-Africa-expansion-hits-rough-patch/3815534-4305402-ie4bo2z/index.html
Kenyan banks are not deriving value in their regional operations with subsidiaries in volatile South Sudan unlikely to stay viable due to conflict and currency woes, investment bank Renaissance Capital says.
kcb should pull out of south sudan.But pan african vision should continue only in viable countries.
Coop will do well in south sudan because of the partnership with Goss.
African economies growth is below par due to high debt, poor governance
I don't blame Barclays for having exited Africa operations. They can get better returns by focussing in America and Asia Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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