Wazua
»
Investor
»
Economy
»
Law Capping interest rates
Rank: Elder Joined: 7/23/2008 Posts: 3,017
|
If Uhuru signs this bill, I just may vote him for a second term. Treasury and CBK are all for reduced interest rates, so why not support the process. Market forces are not working as fast as we need them to work to manage the high interest rates regime. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
|
|
|
Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
|
The Banking cartles and CBK have ganged up against the biol, very sad day. Where in the world do commercial banks makes 30 billion profits and pay 1.5% pa interest on deposits? Its only invetsment banks which can make such weird profits since most of them are actually pyranid schemes and cons...they quicly derate a country from AA+ to say C in a midnight then go behind door and buy the falling goverment papers in that same country, then after a year or two, they would elevate the country from C to A+, sell the papers and go home laughing. For commercial banks like KCB and Equity, this is not their core buisness, so how how they manage those billion-profits is a mystery. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
|
|
|
Rank: Member Joined: 8/19/2015 Posts: 125
|
He will be reluctant to sign it since he has heavily invested in the banking industry. Again Kenya Bankers Association (KBA) chief executive officer Habil Olaka, Treasury CS Rotich, and CBK Governor are not supporting this idea.
|
|
|
Rank: Elder Joined: 7/23/2008 Posts: 3,017
|
Sir invest wrote:He will be reluctant to sign it since he has heavily invested in the banking industry. Again Kenya Bankers Association (KBA) chief executive officer Habil Olaka, Treasury CS Rotich, and CBK Governor are not supporting this idea. 2 faced bastards, one hand they want reduced rates for mwananchi but are unwilling to take any action to achieve the same. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
|
|
|
Rank: Member Joined: 1/22/2015 Posts: 682
|
Impunity wrote:The Banking cartles and CBK have ganged up against the biol, very sad day.
Where in the world do commercial banks makes 30 billion profits and pay 1.5% pa interest on deposits?
Its only invetsment banks which can make such weird profits since most of them are actually pyranid schemes and cons...they quicly derate a country from AA+ to say C in a midnight then go behind door and buy the falling goverment papers in that same country, then after a year or two, they would elevate the country from C to A+, sell the papers and go home laughing.
For commercial banks like KCB and Equity, this is not their core buisness, so how how they manage those billion-profits is a mystery.
Unfortunately that is a defining characteristic of 3rd world countries: government is held hostage by private business interests
|
|
|
Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
|
Mike Ock wrote:Impunity wrote:The Banking cartles and CBK have ganged up against the biol, very sad day.
Where in the world do commercial banks makes 30 billion profits and pay 1.5% pa interest on deposits?
Its only invetsment banks which can make such weird profits since most of them are actually pyranid schemes and cons...they quicly derate a country from AA+ to say C in a midnight then go behind door and buy the falling goverment papers in that same country, then after a year or two, they would elevate the country from C to A+, sell the papers and go home laughing.
For commercial banks like KCB and Equity, this is not their core buisness, so how how they manage those billion-profits is a mystery.
Unfortunately that is a defining characteristic of 3rd world countries: government is held hostage by private business interests Its becomes more messy when the Nations CEO is one of the biggest banker on the land! The Arab spring could be the only solution left, sadly. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
|
|
|
Rank: New-farer Joined: 12/1/2014 Posts: 45 Location: Nairobi
|
Impunity wrote:Mike Ock wrote:Impunity wrote:The Banking cartles and CBK have ganged up against the biol, very sad day.
Where in the world do commercial banks makes 30 billion profits and pay 1.5% pa interest on deposits?
Its only invetsment banks which can make such weird profits since most of them are actually pyranid schemes and cons...they quicly derate a country from AA+ to say C in a midnight then go behind door and buy the falling goverment papers in that same country, then after a year or two, they would elevate the country from C to A+, sell the papers and go home laughing.
For commercial banks like KCB and Equity, this is not their core buisness, so how how they manage those billion-profits is a mystery.
Unfortunately that is a defining characteristic of 3rd world countries: government is held hostage by private business interests Its becomes more messy when the Nations CEO is one of the biggest banker on the land! The Arab spring could be the only solution left, sadly. This bill may not see the light of the day. In my humble opinion i dont support the signing. We are in a liberal market aka free economy, why then revert the gains brought about by this position of freeness. Lowering of interest rates by banks et al cannot be emphasized more but putting a bill to do it is not the right avenue. The CBK is already putting measures in place to ensure the CBR & KBRR rates are effectively transmitted and they have already started to do so. This is the process that needs to be enforced and strengthened. One would wonder, how was the +4% for loans & 70% for deposits arrived at? What were the factors considered? What stakeholders input were put in place? Its we the consumers of credit who needs to 'force' the reduction of lending rates via the pricing information available in the various sources. my thoughts.
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 14,317 Location: nairobi
|
Emerger wrote:Impunity wrote:Mike Ock wrote:Impunity wrote:The Banking cartles and CBK have ganged up against the biol, very sad day.
Where in the world do commercial banks makes 30 billion profits and pay 1.5% pa interest on deposits?
Its only invetsment banks which can make such weird profits since most of them are actually pyranid schemes and cons...they quicly derate a country from AA+ to say C in a midnight then go behind door and buy the falling goverment papers in that same country, then after a year or two, they would elevate the country from C to A+, sell the papers and go home laughing.
For commercial banks like KCB and Equity, this is not their core buisness, so how how they manage those billion-profits is a mystery.
Unfortunately that is a defining characteristic of 3rd world countries: government is held hostage by private business interests Its becomes more messy when the Nations CEO is one of the biggest banker on the land! The Arab spring could be the only solution left, sadly. This bill may not see the light of the day. In my humble opinion i dont support the signing. We are in a liberal market aka free economy, why then revert the gains brought about by this position of freeness. Lowering of interest rates by banks et al cannot be emphasized more but putting a bill to do it is not the right avenue. The CBK is already putting measures in place to ensure the CBR & KBRR rates are effectively transmitted and they have already started to do so. This is the process that needs to be enforced and strengthened. One would wonder, how was the +4% for loans & 70% for deposits arrived at? What were the factors considered? What stakeholders input were put in place? Its we the consumers of credit who needs to 'force' the reduction of lending rates via the pricing information available in the various sources. my thoughts. The borrowing rates are too high and banks get way too much profit for a developing state.. The approach taken by our legislators may not be the best but its better to do something wrong fast than to do nothing right slowly COOP, IMH, KEGN, KQ, MTNU
|
|
|
Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
|
Obi 1 Kanobi wrote:If Uhuru signs this bill, I just may vote him for a second term.
Treasury and CBK are all for reduced interest rates, so why not support the process.
Market forces are not working as fast as we need them to work to manage the high interest rates regime. Because it's the consumers who will suffer, the govt can reduce the interest rates without the bill, they only need to ensure they are borrowing from the banks at <5% If Obiero did it, Who Am I?
|
|
|
Rank: Veteran Joined: 4/4/2016 Posts: 2,021 Location: Kitale
|
Obi 1 Kanobi wrote:If Uhuru signs this bill, I just may vote him for a second term.
Treasury and CBK are all for reduced interest rates, so why not support the process.
Market forces are not working as fast as we need them to work to manage the high interest rates regime. i do not support this bill.The NPLS are still too high.Reducing the rates wont help reduce npls.A defaulter is just a defaulter. Towards the goal of financial freedom
|
|
|
Wazua
»
Investor
»
Economy
»
Law Capping interest rates
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.
|