@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)