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Portfolio Balancing: Avoid Over Exposure To Financial Sector
Ericsson
#201 Posted : Saturday, February 17, 2018 3:39:50 PM
Rank: Elder


Joined: 12/4/2009
Posts: 4,518
Location: NAIROBI
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.
VituVingiSana
#202 Posted : Saturday, February 17, 2018 5:44:56 PM
Rank: Chief


Joined: 1/3/2007
Posts: 13,875
Location: Nairobi
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
Ericsson
#203 Posted : Saturday, February 17, 2018 8:56:15 PM
Rank: Elder


Joined: 12/4/2009
Posts: 4,518
Location: NAIROBI
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.
VituVingiSana
#204 Posted : Saturday, February 17, 2018 9:25:42 PM
Rank: Chief


Joined: 1/3/2007
Posts: 13,875
Location: Nairobi
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
Ericsson
#205 Posted : Saturday, February 17, 2018 11:26:19 PM
Rank: Elder


Joined: 12/4/2009
Posts: 4,518
Location: NAIROBI
@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

obiero
#206 Posted : Sunday, February 18, 2018 11:40:13 AM
Rank: Elder


Joined: 6/23/2009
Posts: 8,669
Location: nairobi
Let me leave this here https://www.businessdail...08600-pkmxjiz/index.html
www.winda.co.ke
Ericsson
#207 Posted : Sunday, February 18, 2018 5:13:58 PM
Rank: Elder


Joined: 12/4/2009
Posts: 4,518
Location: NAIROBI
[quote=obiero]Let me leave this here https://www.businessdail...8600-pkmxjiz/index.html[/quote]


Like you've all along been singing "the two boys have messed the economy"
obiero
#208 Posted : Sunday, February 18, 2018 7:31:58 PM
Rank: Elder


Joined: 6/23/2009
Posts: 8,669
Location: nairobi
Ericsson wrote:
[quote=obiero]Let me leave this here https://www.businessdail...8600-pkmxjiz/index.html[/quote]


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
www.winda.co.ke
Ericsson
#209 Posted : Sunday, February 18, 2018 7:36:34 PM
Rank: Elder


Joined: 12/4/2009
Posts: 4,518
Location: NAIROBI
obiero wrote:
Ericsson wrote:
[quote=obiero]Let me leave this here https://www.businessdail...8600-pkmxjiz/index.html[/quote]


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
Ebenyo
#210 Posted : Sunday, February 18, 2018 7:51:43 PM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,194
Location: Kitale
Ericsson wrote:
[quote=obiero]Let me leave this here https://www.businessdail...8600-pkmxjiz/index.html[/quote]


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.
Dont work for money.Let your money work for you.
obiero
#211 Posted : Sunday, February 18, 2018 9:40:44 PM
Rank: Elder


Joined: 6/23/2009
Posts: 8,669
Location: nairobi
Ebenyo wrote:
Ericsson wrote:
[quote=obiero]Let me leave this here https://www.businessdail...8600-pkmxjiz/index.html[/quote]


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.

Remember economics 101
www.winda.co.ke
VituVingiSana
#212 Posted : Friday, April 13, 2018 6:48:55 PM
Rank: Chief


Joined: 1/3/2007
Posts: 13,875
Location: Nairobi
CBK says banks to take full capital hit from 2019 loans
https://www.businessdail...91260-num3dmz/index.html
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
obiero
#213 Posted : Saturday, April 14, 2018 7:46:56 AM
Rank: Elder


Joined: 6/23/2009
Posts: 8,669
Location: nairobi
VituVingiSana wrote:
CBK says banks to take full capital hit from 2019 loans
https://www.businessdail...1260-num3dmz/index.html

Funga mishipi na chungeni mifuko
www.winda.co.ke
Ericsson
#214 Posted : Monday, April 23, 2018 12:18:55 PM
Rank: Elder


Joined: 12/4/2009
Posts: 4,518
Location: NAIROBI
https://kenyanwallstreet...nk-under-economic-bloc/

ourteen governors have said they will acquire an existing bank under the Lake Region Economic Bloc (LREB) to propel their development agenda.

Wycliffe Oparanya, LREB chairman and Governor Kakamega County said ex KCB Group CEO Martin Oduor has been asked to help find a potential bank for the bloc’s project worth Sh2.8 billion.

“We have decided to buy an existing bank instead of establishing a new one, which will take time. […] We want a smaller bank where we have a controlling share,” Oparanya said at Lesavanna Hotel in Kisumu.

Governor Oparanya said the project is at an advanced stage and have discussed the matter over with the Controller of budget, the governor of the Central Bank, and the Auditor General.
obiero
#215 Posted : Monday, April 23, 2018 3:26:33 PM
Rank: Elder


Joined: 6/23/2009
Posts: 8,669
Location: nairobi
Ericsson wrote:
https://kenyanwallstreet.com/14-lake-region-governors-set-to-acquire-bank-under-economic-bloc/

ourteen governors have said they will acquire an existing bank under the Lake Region Economic Bloc (LREB) to propel their development agenda.

Wycliffe Oparanya, LREB chairman and Governor Kakamega County said ex KCB Group CEO Martin Oduor has been asked to help find a potential bank for the bloc’s project worth Sh2.8 billion.

“We have decided to buy an existing bank instead of establishing a new one, which will take time. […] We want a smaller bank where we have a controlling share,” Oparanya said at Lesavanna Hotel in Kisumu.

Governor Oparanya said the project is at an advanced stage and have discussed the matter over with the Controller of budget, the governor of the Central Bank, and the Auditor General.

This is madness redefined. So we set up a bank for guaranteed loan approvals to effect the development agenda? This doesn't make any sense at all
www.winda.co.ke
VituVingiSana
#216 Posted : Monday, April 23, 2018 4:34:26 PM
Rank: Chief


Joined: 1/3/2007
Posts: 13,875
Location: Nairobi
Ericsson wrote:
https://kenyanwallstreet.com/14-lake-region-governors-set-to-acquire-bank-under-economic-bloc/

ourteen governors have said they will acquire an existing bank under the Lake Region Economic Bloc (LREB) to propel their development agenda.

Wycliffe Oparanya, LREB chairman and Governor Kakamega County said ex KCB Group CEO Martin Oduor has been asked to help find a potential bank for the bloc’s project worth Sh2.8 billion.

“We have decided to buy an existing bank instead of establishing a new one, which will take time. […] We want a smaller bank where we have a controlling share,” Oparanya said at Lesavanna Hotel in Kisumu.

Governor Oparanya said the project is at an advanced stage and have discussed the matter over with the Controller of budget, the governor of the Central Bank, and the Auditor General.

They should buy Sidian Bank Laughing out loudly Laughing out loudly Laughing out loudly
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#217 Posted : Monday, April 23, 2018 4:37:09 PM
Rank: Elder


Joined: 12/4/2009
Posts: 4,518
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
https://kenyanwallstreet.com/14-lake-region-governors-set-to-acquire-bank-under-economic-bloc/

ourteen governors have said they will acquire an existing bank under the Lake Region Economic Bloc (LREB) to propel their development agenda.

Wycliffe Oparanya, LREB chairman and Governor Kakamega County said ex KCB Group CEO Martin Oduor has been asked to help find a potential bank for the bloc’s project worth Sh2.8 billion.

“We have decided to buy an existing bank instead of establishing a new one, which will take time. […] We want a smaller bank where we have a controlling share,” Oparanya said at Lesavanna Hotel in Kisumu.

Governor Oparanya said the project is at an advanced stage and have discussed the matter over with the Controller of budget, the governor of the Central Bank, and the Auditor General.

They should buy Sidian Bank Laughing out loudly Laughing out loudly Laughing out loudly


That is a loss making entity with little presence in that zone.
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