Ericsson wrote:mlennyma wrote:Almost all top banks have proved the rate cap was not a death sentence and can do with or without it
What about the economy?
Rate cap will be effective if GoK reduces it's domestic borrowing.
The banks are reporting growth as they increased investment in government securities not private sector growth
The reality is that many banks are making more money on a risk-reward basis on high-yielding GoK securities and Non-Interest Income rather than lending to the private sector.
Equity made it clear that it would increase its GoK debt book at the expense of its loan book. 18 months later, we see some banks with 50+% of their assets in GoK paper.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett