Wazua
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Portfolio Balancing: Avoid Over Exposure To Financial Sector
Rank: Chief Joined: 1/3/2007 Posts: 18,375 Location: Nairobi
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Ericsson wrote: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
I thought there were other reasons including cashing out to get more capital for their "mother" banks. Anyway, in Kenya BBK screwed up by kicking out wananchi and ceding ground to Equity among others. At one point, NIC was a subsidiary of BBK.
One risk global banks face is dealing with "terrorist" or "money laundering" clients in certain jurisdictions. I think the global banks fear they will be penalized in the US/EU by the regulators.
Apparently, Citibank Kenya will only deal with vetted local institutions, embassies and MNCs. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 4/4/2016 Posts: 2,021 Location: Kitale
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VituVingiSana wrote:Ericsson wrote: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
I thought there were other reasons including cashing out to get more capital for their "mother" banks. Anyway, in Kenya BBK screwed up by kicking out wananchi and ceding ground to Equity among others. At one point, NIC was a subsidiary of BBK.
One risk global banks face is dealing with "terrorist" or "money laundering" clients in certain jurisdictions. I think the global banks fear they will be penalized in the US/EU by the regulators.
Apparently, Citibank Kenya will only deal with vetted local institutions, embassies and MNCs.
Barclays Africa Group owns 70% of BBK which is up for grab.Whoever buys and change the business modell will reap good returns. 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:VituVingiSana wrote:Ericsson wrote: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
I thought there were other reasons including cashing out to get more capital for their "mother" banks. Anyway, in Kenya BBK screwed up by kicking out wananchi and ceding ground to Equity among others. At one point, NIC was a subsidiary of BBK.
One risk global banks face is dealing with "terrorist" or "money laundering" clients in certain jurisdictions. I think the global banks fear they will be penalized in the US/EU by the regulators.
Apparently, Citibank Kenya will only deal with vetted local institutions, embassies and MNCs.
Barclays Africa Group owns 70% of BBK which is up for grab.Whoever buys and change the business modell will reap good returns.
Who said it's up for grabs and where is the article,
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote: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
I thought there were other reasons including cashing out to get more capital for their "mother" banks. Anyway, in Kenya BBK screwed up by kicking out wananchi and ceding ground to Equity among others. At one point, NIC was a subsidiary of BBK.
One risk global banks face is dealing with "terrorist" or "money laundering" clients in certain jurisdictions. I think the global banks fear they will be penalized in the US/EU by the regulators.
Apparently, Citibank Kenya will only deal with vetted local institutions, embassies and MNCs.
Barclays PLC reports it's accounts/profits in Sterling Pounds.It's biggest contributor to profits in Africa was ABSA.
With Zuma politics and governance,South Africa economy experienced a downturn which hurt the profits.
BBK didn't kick out mwananchi,if you look at its model since independence it was targeting the african working class community,teachers/government employees and indian businessmen.This ones suffered during the last term of KANU/Moi regime.Even stanchart and KCB closed branches in some areas.
BBK owned NIC but they were forced to sell it and the Ndegwas took it over since they were close to the ruling power/elite.
Barclays PLC has decided to focus in North AMerica/USA where they expect to get better returns due to the booming economy like growing personal expenditure,mortgage,car loans,credit cards,booming stock exchange 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:Ebenyo wrote:VituVingiSana wrote:Ericsson wrote: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
I thought there were other reasons including cashing out to get more capital for their "mother" banks. Anyway, in Kenya BBK screwed up by kicking out wananchi and ceding ground to Equity among others. At one point, NIC was a subsidiary of BBK.
One risk global banks face is dealing with "terrorist" or "money laundering" clients in certain jurisdictions. I think the global banks fear they will be penalized in the US/EU by the regulators.
Apparently, Citibank Kenya will only deal with vetted local institutions, embassies and MNCs.
Barclays Africa Group owns 70% of BBK which is up for grab.Whoever buys and change the business modell will reap good returns.
Who said it's up for grabs and where is the article,
Barclays plc is selling their stake in Barclays africa.in fews year time,the brand will cease to exist in africa.It will be rebranded to the buyer name. 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:Ebenyo wrote:VituVingiSana wrote:Ericsson wrote: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
I thought there were other reasons including cashing out to get more capital for their "mother" banks. Anyway, in Kenya BBK screwed up by kicking out wananchi and ceding ground to Equity among others. At one point, NIC was a subsidiary of BBK.
One risk global banks face is dealing with "terrorist" or "money laundering" clients in certain jurisdictions. I think the global banks fear they will be penalized in the US/EU by the regulators.
Apparently, Citibank Kenya will only deal with vetted local institutions, embassies and MNCs.
Barclays Africa Group owns 70% of BBK which is up for grab.Whoever buys and change the business modell will reap good returns.
Who said it's up for grabs and where is the article,
Barclays plc is selling their stake in Barclays africa.in fews year time,the brand will cease to exist in africa.It will be rebranded to the buyer name.
That was already done and completed Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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CBK has given banks 5 years to comply with IFRS9.
Wapi vvs to comment on this Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 11/13/2015 Posts: 1,658
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Ericsson wrote:CBK has given banks 5 years to comply with IFRS9.
Wapi vvs to comment on this
No CBK gave banks 5 years to repair the capital side. Banks implement IFRS9 but 5 years to do capital raising.
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Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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wukan wrote:Ericsson wrote:CBK has given banks 5 years to comply with IFRS9.
Wapi vvs to comment on this
No CBK gave banks 5 years to repair the capital side. Banks implement IFRS9 but 5 years to do capital raising.
It's the same thing as what i said.
IFRS9=Higher capital to cater for risks 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:wukan wrote:Ericsson wrote:CBK has given banks 5 years to comply with IFRS9.
Wapi vvs to comment on this
No CBK gave banks 5 years to repair the capital side. Banks implement IFRS9 but 5 years to do capital raising.
It's the same thing as what i said.
IFRS9=Higher capital to cater for risks
@ericsson Some banks [esp one SIFI with a huge GoK shareholding] got a pass [on the Capital side as @wukan put it] but that doesn't mean they do not have to "provision" the SLRs within that timeframe.
The question is: Why does KCB have SLRs (as a % of the Loan Book) far higher than the most of the banks? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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