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CBK Governor No Match to Kenyan Banks.
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mukiha
#61 Posted : Thursday, April 07, 2011 4:50:22 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
nyari wrote:
Kenyan Banks will be tamed when CBK pushes them into the secondary market by extending the bidding to Large Multinational Banks(read American banks) with deeper pockets and at lower rates

Ask yourself this: why aren't the "Large Multinational Banks(read American banks)" participating in the primary auction right now?

GoK 30yr bond yield = 13.5% [http://www.centralbank.go.ke/securities/bonds/manualresults.aspx]

GoUS 30yr bond yield = 4.6% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/]

GoUK 30yr bond yield = 4.38% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/]
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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drake
#62 Posted : Friday, April 08, 2011 11:40:32 AM
Rank: Member

Joined: 8/8/2009
Posts: 170
mukiha wrote:

@drake; the figures you have given are the HOLDINGS of the various asset classes. These are not [I repeat; NOT] the incomes!



1. Jesus, John and Mary. Are you for real? Do you really think I don't know that?

2. In lay-man's terms this a breakdown of "allocation-of-gross-amounts-lent-(as-broken-down-by-sector)"

3. Consumer comes first followed by Government,

However, if you account/adjust for
1. impairment &
2. overlap between sectors,

Government comes out as the major beneficiary of amounts lent.
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bwenyenye
#63 Posted : Friday, April 08, 2011 12:18:48 PM
Rank: Elder

Joined: 5/24/2007
Posts: 1,805
mukiha wrote:
nyari wrote:
Kenyan Banks will be tamed when CBK pushes them into the secondary market by extending the bidding to Large Multinational Banks(read American banks) with deeper pockets and at lower rates

Ask yourself this: why aren't the "Large Multinational Banks(read American banks)" participating in the primary auction right now?

GoK 30yr bond yield = 13.5% [http://www.centralbank.go.ke/securities/bonds/manualresults.aspx]

GoUS 30yr bond yield = 4.6% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/]

GoUK 30yr bond yield = 4.38% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/]


@Mukiha,

So why do you suppose they are not participating?
I Think Therefore I Am
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mukiha
#64 Posted : Sunday, April 10, 2011 12:55:06 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
bwenyenye wrote:
mukiha wrote:
nyari wrote:
Kenyan Banks will be tamed when CBK pushes them into the secondary market by extending the bidding to Large Multinational Banks(read American banks) with deeper pockets and at lower rates

Ask yourself this: why aren't the "Large Multinational Banks(read American banks)" participating in the primary auction right now?

GoK 30yr bond yield = 13.5% [http://www.centralbank.go.ke/securities/bonds/manualresults.aspx]

GoUS 30yr bond yield = 4.6% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/]

GoUK 30yr bond yield = 4.38% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/]


@Mukiha,

So why do you suppose they are not participating?

Depreciating currency
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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kizee1
#65 Posted : Sunday, April 10, 2011 5:18:20 PM
Rank: Member

Joined: 9/29/2010
Posts: 679
Location: nairobi
bwenyenye wrote:
mukiha wrote:
nyari wrote:
Kenyan Banks will be tamed when CBK pushes them into the secondary market by extending the bidding to Large Multinational Banks(read American banks) with deeper pockets and at lower rates

Ask yourself this: why aren't the "Large Multinational Banks(read American banks)" participating in the primary auction right now?

GoK 30yr bond yield = 13.5% [http://www.centralbank.go.ke/securities/bonds/manualresults.aspx]

GoUS 30yr bond yield = 4.6% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/]

GoUK 30yr bond yield = 4.38% [http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/]


@Mukiha,

So why do you suppose they are not participating?



why wud they when ke yeilds r the lowest in africa, lower even than SA?
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bwenyenye
#66 Posted : Sunday, April 10, 2011 6:17:52 PM
Rank: Elder

Joined: 5/24/2007
Posts: 1,805
@Kizee, Mukiha,
My point ecactly. When you push Kenyan banks to the secondary market, how would you stop them from satiating themselves by going for the bonds abroad?
The only path to this is regulation (worst case) and improving the Kenyan climate of business. The governor has powers to the limit of the former, not the latter guys.
I Think Therefore I Am
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kizee1
#67 Posted : Monday, April 11, 2011 11:29:55 AM
Rank: Member

Joined: 9/29/2010
Posts: 679
Location: nairobi
lakini allowing foreigners to be PDs exclusivley is neo-colonialism i suspect thats why we have seen jp morgan and hsbc set up rep offices...i also wonder if they will agree to be market makers..
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Wa_ithaka
#68 Posted : Monday, April 11, 2011 2:27:51 PM
Rank: Veteran

Joined: 1/7/2010
Posts: 1,279
Location: nbi
I doubt cbk will ever want to get into the game of dictating lending habits of ze banks. Unless we become like China or get another dictator. Both are possible.
In the meantime, I think having better systems for capturing credit information for the whole country will help.
And less GoK borrowing
The Governor of Nyeri - 2017
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gatoho
#69 Posted : Friday, April 15, 2011 11:07:59 PM
Rank: Member

Joined: 1/1/2010
Posts: 518
Location: kandara, Murang'a
[quote=selah]The Kenyan banks have proven they can arm-twist the Governor and push him to a corner with sleuth techniques.

What is Sleuth techniques?
Foresight..
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tonicasert
#70 Posted : Wednesday, April 20, 2011 2:00:03 PM
Rank: Member

Joined: 3/10/2008
Posts: 301
Location: Abu Dhabi
kizee1 wrote:
mukiha wrote:
kizee1 wrote:
mukiha wrote:
selah wrote:
@proverB My arguments are when banks make most of their cash through bonds or investments in CBK instruments it beats the purpose of the banking industry....
.
.
.
The other thing why would a bank charge me withdrawing charges of up to ksh.100 when in actual sense they are making more than 15% out of my savings.

The first statement is a fallacy peddled by Kenyan media. As I have shown above, Bond income is less that 10% of the total income. That cannot be said to be "most of their income"!

If your bank is charging you sh100 withdrawal fees, move to another bank. There are many that do not charge these fees, mine being one of them. Don't be a lazy customer!



bond income is only 10pct of total? are u aware of an income line known as"other income" ??are u talkin about the interest on gvt securities or on trading gvt securities?


Yes, I am aware of it; and it is also around 10% to 15%, bringing the total to around 25%.

if you look at Equity [I have the full report], they have listed income from bond trading as a separate entry in note 9[b]... the figure is Sh2.048b; sounds a lot, but note that total income is Sh20.248b

So, my estimate of 10% is good.



ur math is flawed...i know of one large bank that did 1.5bn in trading and 5bn in revaluation...my point is the line item that made banks cash last year will kill them this year...nearly every banks bond portfolio is under water...



The first bank to hang its linen - Giro Bank.

http://www.businessdaily...552/1147526/-/2j4fqu/-/

With CBR rate hikes, high inflation, Overnight rising, TBill rates rising, I think banks will bite the dust hard this year if the revaluation figures kizee gives are to go by.
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