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Re-Shaping the Kenya Banking Industry

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dunkang		#11 Posted : Friday, April 08, 2016 6:50:29 PM
Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831		kollabo wrote: VituVingiSana wrote: Obi 1 Kanobi wrote: I am optimistically hoping for lower interest rate ragime coz the small banks will no longer compete for deposits leaving institutions with huge cash positions like insurers, pension funds, KTDA's etc to either accept the lower interest rates of the Tier 1 banks or go directly for government bonds. Do you really think Big Banks will share the lower rates with you? They already have 'cheap' deposits yet charge 2% per month for their loans for most customers. Unless you are a 'AAA' customer like BAT or EABL don't expect to pay 15%. Small banks are great for many of us who value service. Yes, some will fail. It's competition. Uchumi gave way to Tuskys, Naivas and Nakumatt. Equity was tiny vs NBK or KCB in 2005. How things change. NBK is technically bankrupt or close to it. It was a 'large' bank which should have been closed down but for GoK. KCB almost collapsed in the 90s but CBK overlooked the capital shortfall. It was recapitalized. The service sucks. Seconded and thirded. To be honest Chase Bank was the no.1 SME friendly bank in Kenya. Was it not for 8 greedy directors. Receive with simplicity everything that happens to you.” ― Rashi
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watesh		#12 Posted : Friday, April 08, 2016 7:32:19 PM
Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya		kollabo wrote: VituVingiSana wrote: Obi 1 Kanobi wrote: I am optimistically hoping for lower interest rate ragime coz the small banks will no longer compete for deposits leaving institutions with huge cash positions like insurers, pension funds, KTDA's etc to either accept the lower interest rates of the Tier 1 banks or go directly for government bonds. Do you really think Big Banks will share the lower rates with you? They already have 'cheap' deposits yet charge 2% per month for their loans for most customers. Unless you are a 'AAA' customer like BAT or EABL don't expect to pay 15%. Small banks are great for many of us who value service. Yes, some will fail. It's competition. Uchumi gave way to Tuskys, Naivas and Nakumatt. Equity was tiny vs NBK or KCB in 2005. How things change. NBK is technically bankrupt or close to it. It was a 'large' bank which should have been closed down but for GoK. KCB almost collapsed in the 90s but CBK overlooked the capital shortfall. It was recapitalized. The service sucks. Seconded and thirded. To be honest Chase Bank was the no.1 SME friendly bank in Kenya. I agree with your statement on Chase Bank, I always admired it from a far. The growth was awesome and it was starting to attract cheap deposits from the middle class.
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murchr		#13 Posted : Thursday, April 28, 2016 4:36:54 PM
Rank: Elder Joined: 2/26/2012 Posts: 15,980		BD wrote: The Central Bank of Kenya (CBK) has ordered an audit of insider loans across the entire banking system in a tightening of supervision that has caused panic among some institutions............... The CBK wrote to all external auditors of banks last Friday, asking for an audit of insider loans by May 31. “The central bank hereby instructs all external auditors of commercial banks and mortgage finance companies to conduct audits on institutions’ insider lending as per the attached terms of reference,” CBK governor Patrick Njoroge wrote in the letter sent to the banks, adding that “the report of the special audit should be submitted to the central bank by May 31, 2016”. .................. The move is seen as a bid by the CBK to get a true picture of banks’ risk exposures and corporate governance standards in line with the overall theme of cleaning up the banking sector. Some lenders have, however, termed the regulator’s action hasty, adding that it could have the unintended consequence of causing a new wave of panic in the industry. “It is good to weed out bad bankers but the urgency with which it is being implemented could cause the failure of more banks,” a CEO of a bank, who cannot be named criticising the regulator, told Business Daily. Interesting times ahead http://www.businessdaily...0/-/14efwbd/-/index.html "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore .
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Swenani		#14 Posted : Thursday, April 28, 2016 4:43:00 PM
Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum		murchr wrote: [quote=BD]The Central Bank of Kenya (CBK) has ordered an audit of insider loans across the entire banking system in a tightening of supervision that has caused panic among some institutions............... The CBK wrote to all external auditors of banks last Friday, asking for an audit of insider loans by May 31. “The central bank hereby instructs all external auditors of commercial banks and mortgage finance companies to conduct audits on institutions’ insider lending as per the attached terms of reference,” CBK governor Patrick Njoroge wrote in the letter sent to the banks, adding that “the report of the special audit should be submitted to the central bank by May 31, 2016”. .................. The move is seen as a bid by the CBK to get a true picture of banks’ risk exposures and corporate governance standards in line with the overall theme of cleaning up the banking sector. Some lenders have, however, termed the regulator’s action hasty, adding that it could have the unintended consequence of causing a new wave of panic in the industry. “It is good to weed out bad bankers but the urgency with which it is being implemented could cause the failure of more banks,” a CEO of a bank, who cannot be named criticising the regulator, told Business Daily. Interesting times ahead http://www.businessdaily.../-/14efwbd/-/index.html[/quote] KRA had fought and rejected the increase in provision of NPL since it would have meant a decrease in profits translating to lower taxes If Obiero did it, Who Am I?
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