guru267 wrote:erifloss wrote:If CBK continues to tighten up and cash strap these banks as they are doing right now & continue increasing interest rates, then i don't see the same growth or near the same growth in the banking sector this year as it was last year. Some of these banks made exponential growth from one-off items especially bond trading a good example being DTB.
www.businessdailyafrica....8/-/t3mayvz/-/index.html Banks will just pass the rise to the consumer and at the moment demand for loanz is inelastic..
True, though you should remember that we are moving towards less cash chasing more goods and services. People save and invest the excesses thus banks that highly rely on common mwananchi are going to have it rough as compared to the ones that mostly deal with body corporates and high net worth individuals and this is when banks like stanchart make a kill and banks like equity find themselves in the slow growth zone. @madmanlabs, you only go for a mortgage when you are sure you can and will be able to repay and you can only do this with your surplus income thus during this inflationary period, uprising in the middle east, the US debt at an all time high, consumer spending down and commodity prices rising by the day i don't see some of the growth areas flourishing.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary