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Mainat
#1 Posted : Tuesday, December 01, 2015 4:20:34 PM
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Joined: 11/21/2006
Posts: 1,590
With National Bank, Consolidated et al showing lower capital ratios than required, will GoK (a) sell them at throw away prices to cronies (possibly) (b) force them to issue Eurobonds smile (c) force CBK to exempt the GoK banks from capital requirements.
Looks dicey either way
Sehemu ndio nyumba
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dunkang
#2 Posted : Tuesday, December 01, 2015 4:32:30 PM
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Joined: 6/2/2011
Posts: 4,818
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Mainat wrote:
With National Bank, Consolidated et al showing lower capital ratios that required, will GoK (a) sell them at throw away prices to cronies (possibly) (b) force them to issue Eurobonds smile (c) force CBK to exempt the GoK banks from capital requirements.
Looks dicey either way

The GoK intends to merge National Bank, Development Bank and Consolidated Bank. That's their strategy.
Receive with simplicity everything that happens to you.” ― Rashi

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Mainat
#3 Posted : Tuesday, December 01, 2015 4:55:24 PM
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Joined: 11/21/2006
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Minus one plus minus one equals two?
How will it cure the capital deficiency?
dunkang wrote:
Mainat wrote:
With National Bank, Consolidated et al showing lower capital ratios that required, will GoK (a) sell them at throw away prices to cronies (possibly) (b) force them to issue Eurobonds smile (c) force CBK to exempt the GoK banks from capital requirements.
Looks dicey either way

The GoK intends to merge National Bank, Development Bank and Consolidated Bank. That's their strategy.

Sehemu ndio nyumba
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whiteowl
#4 Posted : Tuesday, December 01, 2015 11:11:08 PM
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Joined: 4/16/2014
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Mainat wrote:
With National Bank, Consolidated et al showing lower capital ratios that required, will GoK (a) sell them at throw away prices to cronies (possibly) (b) force them to issue Eurobonds smile (c) force CBK to exempt the GoK banks from capital requirements.
Looks dicey either way


If this trend continues unchecked, we may have a Lehman moment for Kenya banks in some years to come.
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KulaRaha
#5 Posted : Wednesday, December 02, 2015 8:42:54 AM
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Joined: 7/26/2007
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Business opportunities are like buses,there's always another one coming
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Mainat
#6 Posted : Wednesday, December 02, 2015 9:08:00 AM
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Jokes aside, how is GoK going to handle the recapitalisation? As we speak Consolidated bank is under the minimum requirement.

KulaRaha wrote:

Sehemu ndio nyumba
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KulaRaha
#7 Posted : Wednesday, December 02, 2015 9:13:32 AM
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Joined: 7/26/2007
Posts: 6,514
It will be difficult to close or merge some of these GoK junks: lots of political loans etc stuck there and difficult to hide.

They'll issue some junk bonds and recapitalize.
Business opportunities are like buses,there's always another one coming
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Ericsson
#8 Posted : Wednesday, December 02, 2015 11:01:43 PM
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After the merger of Development Bank of Kenya,National Bank and Consolidated Bank and distribution of shareholding among the various shareholders in the three listed entities in the new company;a rights issue will be done to recapitalise the merged entity
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Boris Boyka
#9 Posted : Wednesday, December 02, 2015 11:08:00 PM
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Ericsson wrote:
After the merger of Development Bank of Kenya,National Bank and Consolidated Bank and distribution of shareholding among the various shareholders in the three listed entities in the new company;a rights issue will be done to recapitalise the merged entity

Its better to handle 1 hungry dog than three hungry dogs....PR, perception and market mood.
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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