Is Equity Bank as Healthy as they potray or want us to believe?

Wamami

Implications in the unfortunate event that the bank goes under as some guys preach here? Would any sane government encourage/allow such a thing to befall its economy? Be objective.

Truest proverb: Mwenda pole hajikwai

@simonk

now where did that come from....Me think Equity will be here for a long time to come...But again stranger things have happened ...Kwani si Railways was brought down for selfish interests?

Unfortunately,you will notice a common thread of bile,basically unsubstanciated claims,concerning Equity Bank that seem to emanate from die-hard supporters of the opposition party in government(?)..it's become that predictable

Kenya collapse: impact
You're fired: impact
Accident: impact
Dead President: Impact
Somali attack: Impact
Meteorite hits Kenya: impact
You're hit by a bus in the morning: Impact

These are just some of the things that could go wrong. If you want to dwell on such things you are not wise. Ama you think the gava should begin a commission of inquiry on all kinds of random events that could occur.
The important thing is to think about such because of a real reason and risk not just to day dream. And inadvertently your 'Equity' post could be considered causing unnecessary ill repute on a bank. (And even here in SK there is a huge number of people prophesying all kinds of doom on Equity bank - mostly guided by tribal hatred and jealousy).
On a different point,what about Barclays bank collapse: Impact. Anything/Everything is possible in this world. You should only ACT on real threats - worrying about things you have no control over / you can't do anything about isn't productive.

On a different point,many countries have a rule on how much % deposit a bank is allowed to control in a given country to avoid a mega disaster in case the bank goes under.

However Equity runs a very low risk operation - bring lots of depositors and make money on their transactions. It does not engage in high risk business e.g. stocks,margin lending or any other shenanigans like pyramid schemes as some would hope and wish to believe. EB is here to stay. I'm waiting for EB to land in S.A,Ghana and Nigeria - some people here will die of envy.

@mv,have u really addressed my querry or myself? Re-read my post and answer as it is. This arises fm the frequent bashing of the mega bank by some of us to an xtent of branding it a ponzi. Just looking 4 sober views on likely consequences.

Truest proverb: Mwenda pole hajikwai

Impact? Catastrophic! The panic that would grip the small account holders would be overwhelming. I've always wondered what happens when a bank that was holding your hard earned 20 million bob goes down. Does your money disappear just like that or will it be refunded by DPF and in what percentage if not 100%? Anyone?

@Thimioni: Don't waste your time trying to indulge some people here. Those of us who understand your querry are being objective!


Immorality: The morality of those who are having a better time!

The bulk of EB’s income is commission based (commission charged on services),Most other Bank’s income is interest based (interest based on loan)..EB operates on a large volume,low margin model,most other Banks operate on low volume,high margin model. Thus the approach between the two is almost like oil and water,there is no need for direct comparison. To the degree that each ‘keeps enticing’ its turf,the income is assured. There is absolutely no need for competitors to make posts here about EB being a Pyramid schemes here so as to instil fear in its clients….Please spare the energy by improving your services and thus keep the Clients you already have..

On the other hand,no one has come up with concrete proof why EB is Ponzi,so am I now permitted to give proof why EB is not Ponzi? Let’s learn from history….Those banks which collapsed previously in Kenya did so because of political interference..i.e. Govt deposits money today,the following day,a corrupt crook goes to the same bank and takes the whole amount deposited yesterday as loan…and offers a govt property as security…So when this guys fails to pay,what happens to the bank? In this day and age,such corrupt deals have no place…so count such possibilities out.. or Is there any other bank which collapsed in Kenya other than for such reasons? Someone with details please step out and tell us!!

Finally EB has 50% accounts and thus reflects the face of Kenya more than any other bank,so if they were to collapse,Kenya and other Banks would have collapsed earlier!! But Kenya will not collapse!!!I hope this puts the matter to rest

Wapi TB? I bet u r asleep by now bt would love to see his contribution based on baak's post wen u wake up. @sasha,thanx siz

Truest proverb: Mwenda pole hajikwai

@BAAK

Don't get me wrong; I am not comparing KFB to Equity. You asked for the name of bank that did not collapse for political reasons,and I gave you one!

KFB was quoted on the NSE (I was the prouder owner of a couple of thousand shares at the time it collapsed). It was previously known as Kenya Finance Corporation...those old enough will remember it as the sponsor of The Proffesional View on KBC.

KFB collapsed in the aftermath of Goldenberg: They were one of the biggest players in financing purchase of Matatus (the others were NIC though not very keen on matatus). Whe the economy went to ICU courtesy of Goldenberg,interest rates shot to the moon (I recall buying TBs at 71%!!!)

KFB responded by increasing its interest rates on loans to 45%....the borrowers could not service the high payments and defaulted...enmass...The bank was left with many matatus and parcels of land that it could not sell...remember,the economy was dead!

Crazy large depositors rejected proposals to convert their deposits into equity....The DPF is still liquidating the assets....15 years later!

Perhaps I should change my screen-name to 'Mzee-wa-Kazi'

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)