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Portfolio Balancing: Avoid Over Exposure To Financial Sector
Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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VituVingiSana wrote: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?
KCB is the biggest bank and the biggest loan portfolio in kenya. 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:VituVingiSana wrote: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?
KCB is the biggest bank and the biggest loan portfolio in kenya.
But why the largest SLR as a % of its Loan Portfolio? 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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VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote: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?
KCB is the biggest bank and the biggest loan portfolio in kenya.
But why the largest SLR as a % of its Loan Portfolio?
They are providing higher provisionings for their loans compared to the other banks and a higher risk profile.This has the effect of them being very stringent and thoroughly vetting their loan applications. 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:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote: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?
KCB is the biggest bank and the biggest loan portfolio in kenya.
But why the largest SLR as a % of its Loan Portfolio?
They are providing higher provisionings for their loans compared to the other banks and a higher risk profile.This has the effect of them being very stringent and thoroughly vetting their loan applications.
Then why are the increased provisions being "written back" as SLRs?
How do SLRs originate? 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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@vvs SLR you cant do a comparison amongst banks because the amount to put aside varies on each bank.
For further reading refer to the below article
http://www.investingansw.../loan-loss-reserves-2790
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 14,321 Location: nairobi
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Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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Like you've all along been singing "the two boys have messed the economy" Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 14,321 Location: nairobi
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Ericsson wrote:
Like you've all along been singing "the two boys have messed the economy"
@ericsson the worst is yet to come. Kibaki understood the country and how it ticks COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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obiero wrote:Ericsson wrote:
Like you've all along been singing "the two boys have messed the economy"
@ericsson the worst is yet to come. Kibaki understood the country and how it ticks
I agree with you 100%.Iko watu watajiharia 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:
Like you've all along been singing "the two boys have messed the economy"
Its because of Gok.The three banks have no problem.The problem is with poor gok borrowing. Towards the goal of financial freedom
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