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Law Capping interest rates
tom_boy
#1141 Posted : Friday, September 16, 2016 7:13:47 PM
Rank: Member

Joined: 2/20/2007
Posts: 767
penkon wrote:
wukan wrote:
tom_boy wrote:
Where are those doomsayers, eti oooh, banks will not lend, oooooh , the end of kenyan economy, oooh sme will suffer from lack of credit. Wako wapi wajitokeze. In the history of Kenyan banks, no bank has ever collapsed because they lent to Wanjiku and that is a FACT.



Be patient it's early dayssmile smile . Time for reckoning will come. I'm sure you don't know Rural Urban creidt, Jimba credit, kenya savings & mortgages, Union bank of kenya etc


nowadays its saccos, i believe its hard. those where politically fueled credit shops to fleece your village


Exactly. Please give examples of banks that collapsed because they lent too much to common mwananchi. All banks that have collapsed to date was due to illegal insider lending or politically connected lending. Even the so called small banks will survive as long as they do prudent business. Downsize your staff, find a niche to lend to and do clean business. Even with as little as 1b to lend, a spread of 6% gives you 60m in gross income a year. Pretty decent cash. Just downsize and do clean business and leverage on technology. For once, the bank owners will have to use their money to make money. No more making outrageous profit from other peoples money. I repeat, no bank that does clean business will collapse. Banks that are already doing shady deals will collapse because the tap has been switched off.
They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
tom_boy
#1142 Posted : Friday, September 16, 2016 10:10:55 PM
Rank: Member

Joined: 2/20/2007
Posts: 767
One way that banks have found to go around the rate cap regulation is to play around with tenor of a loan. Some have capped unsecured loan at 3yrs only and some at 1yr. This will accommodate the so called " high risk borrower" without punishing the good risk ones by having differing tenor for different risk categories. I think we needed this bill to stimulate innovative thinking in our bankers.
They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
Horton
#1143 Posted : Friday, September 16, 2016 11:11:51 PM
Rank: Veteran

Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
Banks that impose unnecessarily strict regimes of lending will suffer. This is an opportunity for a new "equity" to be born.

Banks that are overly strict will end up seeing the doldrums while those that adapt will see customer base grow.

In my laymans opinion, it may be positive for the exonomy as a whole
Ericsson
#1144 Posted : Saturday, September 17, 2016 7:05:07 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,820
Location: NAIROBI
GOK will borrow cheaply for its officials to steal
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
obiero
#1145 Posted : Saturday, September 17, 2016 7:38:54 AM
Rank: Elder

Joined: 6/23/2009
Posts: 14,320
Location: nairobi
Ericsson wrote:
GOK will borrow cheaply for its officials to steal

That is as simple as it can be said
COOP, IMH, KEGN, KQ, MTNU
streetwise
#1146 Posted : Saturday, September 17, 2016 10:34:53 AM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
It's better when cheap money is stolen
obiero
#1147 Posted : Saturday, September 17, 2016 10:45:16 AM
Rank: Elder

Joined: 6/23/2009
Posts: 14,320
Location: nairobi
streetwise wrote:
It's better when cheap money is stolen

Quantity shall be larger.. Think about it. We shall not lie low like an envelope. Soon and very soon we shall rise against the high priests in a fight to claim ethical leaders
COOP, IMH, KEGN, KQ, MTNU
Lolest!
#1148 Posted : Saturday, September 17, 2016 7:02:04 PM
Rank: Elder

Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
Obi 1 Kanobi wrote:
Gonna let this topic simmer for a year, then I will re-visit it and start crowing to akina @Maichblack and his doomsayer band.

Will keep doing that on the anniversary of signing this law until the economic Armageddon that they predicted comes to pass. smile smile

Laughing out loudly Laughing out loudly Laughing out loudly The sky will have fallen by then
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
murchr
#1149 Posted : Saturday, September 17, 2016 10:34:59 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
Lolest! wrote:
Obi 1 Kanobi wrote:
Gonna let this topic simmer for a year, then I will re-visit it and start crowing to akina @Maichblack and his doomsayer band.

Will keep doing that on the anniversary of signing this law until the economic Armageddon that they predicted comes to pass. smile smile

Laughing out loudly Laughing out loudly Laughing out loudly The sky will have fallen by then


Why are you gonna wait for an year when things are already unfolding

Ref to post #1122 and 1128 and Kastone gave the explanation
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
MaichBlack
#1150 Posted : Sunday, September 18, 2016 11:58:12 AM
Rank: Elder

Joined: 7/22/2009
Posts: 7,910
murchr wrote:
Lolest! wrote:
Obi 1 Kanobi wrote:
Gonna let this topic simmer for a year, then I will re-visit it and start crowing to akina @Maichblack and his doomsayer band.

Will keep doing that on the anniversary of signing this law until the economic Armageddon that they predicted comes to pass. smile smile

Laughing out loudly Laughing out loudly Laughing out loudly The sky will have fallen by then


Why are you gonna wait for an year when things are already unfolding

Ref to post #1122 and 1128 and Kastone gave the explanation

One wonders @murchr! Why is @Obi "waiting" for things that are ALREADY happening???

Is it Barclays or which bank that sent messages to loan holders informing them of the reduction in interest rates on existing loans but they will have to be "collateralized"?
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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