Wazua
»
Market
»
Review
»
Are banks stealing from us?
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
|
In today's paper CBA has advertised that it will reduce its lending rate from 19% to 17%. Now that is all good and was expected, what I don't get is why this is effective January and not December yet the CBR rate was reduced earlier this month! Their profits have soared by 1.01B to 3.18B Sept2011/Sept2012. The worrying thing is other institutions have not communicated passing on the new reduced rate to their overstretched customers. My friends and I have met and petitioned our MP to revive the bill seeking amend the Banking Act (Cap 488) to put a cap on interest rates and to fix the minimum interest rate that banks will pay on deposits/savings. Contrary to what the banks are saying that they will make it hard for us to access credit, I see it as an opportunity for them and new entrants to come in with new innovations eg by lending through mobile phones m-pesa style could reduce overheads. Eventually they will all tow the line but we have to first say enough is enough. This country cannot develop and grow out of with these rates! Do your part and petition your MP now before Parliament resumes and I bet you they'll do it since they have heavy debts to repay yet they could be jobless come April next year.
BBI will solve it :)
|
|
|
Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
|
Banks have always stolen from us. they are politically connected and operate in a sector which dominates the economy. rip off lazima while competing to announce 20b profits. Thieves
|
|
|
Rank: New-farer Joined: 6/21/2012 Posts: 24 Location: Nairobi
|
2012 wrote:Contrary to what the banks are saying that they will make it hard for us to access credit, I see it as an opportunity for them and new entrants to come in with new innovations eg by lending through mobile phones m-pesa style could reduce overheads. Innovation? For as long as the banks can make astronomical profits, without struggling to lend to us pauper types, or, God forbid, provide better services, then nothing is going to change. Better to ask the question and look like a fool for a moment, than to remain in ignorance and be a fool forever.
|
|
|
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
I wonder what Wazuans with shares in EQTY, KCB, NBK, SCBK, BBK,DTB, CFC, NIC, Co-Op & HF have to say about this; honestly! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: Elder Joined: 10/23/2008 Posts: 3,966
|
mukiha wrote:I wonder what Wazuans with shares in EQTY, KCB, NBK, SCBK, BBK,DTB, CFC, NIC, Co-Op & HF have to say about this; honestly! Catch 22 situation. The wazuans are enjoying the dividends but finding loan repayable quite high. Luck is when Preparation meets Opportunity. ~ Lucius Annaeus Seneca
|
|
|
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
|
mukiha wrote:I wonder what Wazuans with shares in EQTY, KCB, NBK, SCBK, BBK,DTB, CFC, NIC, Co-Op & HF have to say about this; honestly! I have KCB and Equity but I really don't think that squeezing my dividend out of people is the fight way to do business eventually the bad debts will increase (wait for the MPs we'll drop) and my divs will go down while other more innovative competitors move in. On another point Mukiha, are you in business? For you to survive your margins cannot be that high and if you are giving 20% of your profits to the banks not forgetting VAT, you start becoming uncompetitive in manufacturing as you have to pass down a lot to the consumer and most consumers just reduce usage, they will push toothpaste for one and a half month instead of one month etc.
BBI will solve it :)
|
|
|
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
2012 wrote:mukiha wrote:I wonder what Wazuans with shares in EQTY, KCB, NBK, SCBK, BBK,DTB, CFC, NIC, Co-Op & HF have to say about this; honestly! I have KCB and Equity but I really don't think that squeezing my dividend out of people is the fight way to do business eventually the bad debts will increase (wait for the MPs we'll drop) and my divs will go down while other more innovative competitors move in. On another point Mukiha, are you in business? For you to survive your margins cannot be that high and if you are giving 20% of your profits to the banks not forgetting VAT, you start becoming uncompetitive in manufacturing as you have to pass down a lot to the consumer and most consumers just reduce usage, they will push toothpaste for one and a half month instead of one month etc. yes I am in business. I don't rely a lot on bank loans... actually it's been more than five years since the last one! When I need credit I rely on my suppliers. I have learnt that if you keep your suppliers happy, they will always be ready to bail you out when in need. Still; I know a businessman who is busy chasing away banks that are lining up outside his office to give him loans. He manages to push them down to base rate MINUS 3 or 5! He is in property development and he started off using his personal savings to build houses and sell them. Today he is doing finishing touches to a 50-unit residential estate just outside Nairobi.... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
|
demand / supply market price competition capitalism if you want to make money without any of your own you borrow someone's hard-earned money and pay their price "I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
|
|
|
Rank: Elder Joined: 2/23/2009 Posts: 1,626
|
mukiha wrote:2012 wrote:mukiha wrote:I wonder what Wazuans with shares in EQTY, KCB, NBK, SCBK, BBK,DTB, CFC, NIC, Co-Op & HF have to say about this; honestly! I have KCB and Equity but I really don't think that squeezing my dividend out of people is the fight way to do business eventually the bad debts will increase (wait for the MPs we'll drop) and my divs will go down while other more innovative competitors move in. On another point Mukiha, are you in business? For you to survive your margins cannot be that high and if you are giving 20% of your profits to the banks not forgetting VAT, you start becoming uncompetitive in manufacturing as you have to pass down a lot to the consumer and most consumers just reduce usage, they will push toothpaste for one and a half month instead of one month etc. yes I am in business. I don't rely a lot on bank loans... actually it's been more than five years since the last one! When I need credit I rely on my suppliers. I have learnt that if you keep your suppliers happy, they will always be ready to bail you out when in need. Still; I know a businessman who is busy chasing away banks that are lining up outside his office to give him loans. He manages to push them down to base rate MINUS 3 or 5! He is in property development and he started off using his personal savings to build houses and sell them. Today he is doing finishing touches to a 50-unit residential estate just outside Nairobi.... Very few people think like this because people forget suppliers are your partners.  Uncertainty is certain.Let go
|
|
|
Wazua
»
Market
»
Review
»
Are banks stealing from us?
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|