Wazua
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Law Capping interest rates
Rank: Elder Joined: 7/22/2009 Posts: 7,460
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quicksand wrote:MaichBlack wrote:heri wrote:http://mobile.nation.co.ke/business/Bank-of-Uganda-under-pressure-to-limit-cost-of-credit/1950106-3403494-qrwv3kz/index.html
IN SUMMARY
On Tuesday September 20, Bank of Uganda Governor Prof Emmanuel Tumusiime-Mutebile called an impromptu meeting at his office, which excluded senior management staff, to discuss interest rate caps.
About seven executives attended Prof Tumusiime-Mutebile’s meeting, including representatives from Stanbic Bank, PricewaterhouseCoopers Uganda, the East African Development Bank, Uganda Revenue Authority and the Ministry of Finance, Planning and Economic Development.
Prof Mutebile raised objections to interest rate caps, arguing that they could escalate distortions in the credit market, trigger blackmarket activity and deny many borrowers access to credit, according to a source who attended the meeting Enough said!!! But if you listen to some people here, apparently everyone who has some Finance and Economics knowledge is wrong on this issue! And people who know zilch are correct!!! Fait Accompli. What is done is done, for Kenya Banksters at least (in the short term). @MaichBlack if you were at the helm of a Kenyan bank (or in a strategic management position) and kept on with this pointless attitude of railing at unstoppable political forces instead of getting down and dealing with a business environment that has changed, you would lose your job. For Uganda, it is the ominous shot across the bow. By admitting to being under intense pressure, the gov. is telling the banksters to tame their greed or the politicians will tame it for them. He is saying, look across the border, no one thought it could happen but that reality could soon visit us. When you have your boot on millions of necks, fancy demand-supply and other monetary theories will not cut it. It is the caving-the-heads-in-with-a-rungu theory that takes over, damn the consequences. The saying 'beware of a cornered animal' keeps going over the heads of these disconnected and pampered bankers. My friend, why do you have selective memory??? Look at my posts after the signing. I am busy taking advantage of the fallout and getting rich. Niko kwa soko ndugu!!! But that doesn't stop me from commenting on threads and especially when there is a current story where the good professor in Uganda is of a similar opinion as myself just like the good Dr. in Kenya both of whom happen to be at the helm of Central Banks in their countries. But I apologise if I stepped on toes of some ignant characters. 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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Rank: Elder Joined: 6/23/2009 Posts: 13,555 Location: nairobi
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tom_boy wrote:obiero wrote:maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:[quote=maka]Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. 91, 182, 364 day bills all down.. Expect the shorter tenor to hit 6.5% by December.. As per Graham's law, the bulls at the NSE must show up shortly.. http://www.businessdaily...4800-b0eb44z/index.html[/quote] As per my predictions, the dance between banks and Government in pricing billsand bonds has begun. Banks cannot afford to flood CBK with offers! They will have to worksmart. Here we are.. Tbills approaching 7% while stocks are on mini rally
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,555 Location: nairobi
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obiero wrote:Musimo wrote:Sober wrote:KulaRaha wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution All old loans will be repaid and refinanced at new rates...banks are trying to delay the inevitable. This law cannot be applied retrospectively. That is what killed the Donde Bill Quick question: the other day,when interest rates on government bills rose to the 20s,didnt banks give notice to charge more interest? Now that the rates are down,why don't I sue my bank for not revising interest rates downwards as they revised them upward before? Educate me wazuans. Only @maka seems unaware of the failed implementation on the Donde bill As anticipated, a court case to save the banks. His reasons quite valid http://www.businessdaily...3362-155ln4sz/index.html
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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obiero wrote:obiero wrote:Musimo wrote:Sober wrote:KulaRaha wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution All old loans will be repaid and refinanced at new rates...banks are trying to delay the inevitable. This law cannot be applied retrospectively. That is what killed the Donde Bill Quick question: the other day,when interest rates on government bills rose to the 20s,didnt banks give notice to charge more interest? Now that the rates are down,why don't I sue my bank for not revising interest rates downwards as they revised them upward before? Educate me wazuans. Only @maka seems unaware of the failed implementation on the Donde bill As anticipated, a court case to save the banks. His reasons quite valid http://www.businessdaily...362-155ln4sz/index.html The case doesn't have much legal basis. Mark 12:29
Deuteronomy 4:16
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Rank: New-farer Joined: 3/12/2014 Posts: 96
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guru267 wrote:obiero wrote:obiero wrote:Musimo wrote:Sober wrote:KulaRaha wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution All old loans will be repaid and refinanced at new rates...banks are trying to delay the inevitable. This law cannot be applied retrospectively. That is what killed the Donde Bill Quick question: the other day,when interest rates on government bills rose to the 20s,didnt banks give notice to charge more interest? Now that the rates are down,why don't I sue my bank for not revising interest rates downwards as they revised them upward before? Educate me wazuans. Only @maka seems unaware of the failed implementation on the Donde bill As anticipated, a court case to save the banks. His reasons quite valid http://www.businessdaily...362-155ln4sz/index.html The case doesn't have much legal basis. where was he when UK was applying his mind to sign? does he mean parliament cannot pass laws to govern our institutions?
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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obiero wrote:tom_boy wrote:obiero wrote:maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:[quote=maka]Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. 91, 182, 364 day bills all down.. Expect the shorter tenor to hit 6.5% by December.. As per Graham's law, the bulls at the NSE must show up shortly.. http://www.businessdaily...4800-b0eb44z/index.html[/quote] As per my predictions, the dance between banks and Government in pricing billsand bonds has begun. Banks cannot afford to flood CBK with offers! They will have to worksmart. Here we are.. Tbills approaching 7% while stocks are on mini rally But that's Tbills alone bonds rates are still quite high....after the crazy 10 year we have had the 5 and 20 year which had attractive rates. possunt quia posse videntur
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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Rank: Member Joined: 9/14/2011 Posts: 834 Location: nairobi
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what is your experience in trying to get a loan?
I have an existing 5 year loan with a bank. But when i approached them for a new loan, they said they are only giving loans for a term of 6 months
That they are still working on new products which they will have by next month
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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heri wrote:what is your experience in trying to get a loan?
I have an existing 5 year loan with a bank. But when i approached them for a new loan, they said they are only giving loans for a term of 6 months
That they are still working on new products which they will have by next month We said that will happen but some fellows here said it would not happen. Let me hear their comments. 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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Rank: Veteran Joined: 8/10/2014 Posts: 977 Location: Kenya
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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Fake armchair analysts! Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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MaichBlack wrote:heri wrote:what is your experience in trying to get a loan?
I have an existing 5 year loan with a bank. But when i approached them for a new loan, they said they are only giving loans for a term of 6 months
That they are still working on new products which they will have by next month We said that will happen but some fellows here said it would not happen. Let me hear their comments. My KCB Mpesa limit precapping was 7,500 but now it has been slashed to a meer 1,800. Mshwari has by contrast increased. Iam yet to speak to my bankers to confirm the status of other products. However being a net borrower, I have benefited immensly from the rate cap. I can't speak much about the future but savings of over 20K in interest per month aint bad at all. If the banks freeze lending and I am repaying the principal faster, I say, "why not suspend my projects", after all like buses, a new investment will always be waiting when time and money are both rightly available. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Member Joined: 8/25/2015 Posts: 839 Location: Kite
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Good entertainment,shift time imefika,@Swenani good to know pia hesabu upo! 
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Rank: Elder Joined: 6/23/2009 Posts: 13,555 Location: nairobi
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obiero wrote:tom_boy wrote:obiero wrote:maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:[quote=maka]Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. 91, 182, 364 day bills all down.. Expect the shorter tenor to hit 6.5% by December.. As per Graham's law, the bulls at the NSE must show up shortly.. http://www.businessdaily...4800-b0eb44z/index.html[/quote] As per my predictions, the dance between banks and Government in pricing billsand bonds has begun. Banks cannot afford to flood CBK with offers! They will have to worksmart. Here we are.. Tbills approaching 7% while stocks are on mini rally Graham's law remains true http://www.businessdaily...421518-mb1uhx/index.html
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,555 Location: nairobi
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sparkly wrote:obiero wrote:MaichBlack wrote:obiero wrote:muandiwambeu wrote:Ebenyo wrote:obiero wrote:I told you guys to sell off bank stocks in 2014. Luckily made it out of some major holdings in good time.. but a big percent of your portfolio is still in banks! so, what do you expect to be a fair hair cut on obieros portfolio as a result of kamwanaas house attempt to please Wanjiku. what will be the overall industries' hit in percentage. my fair guess from my lender's perspective (16-14.5)/(16*0.5)*100=18.75% conservetively thieves. COOP & HF will come out strongest in this.. Too little meat to be bitten out from the two. Plus HF has never been strong on deposits being only licensed to have current accounts a few months ago!! HF will have the least interest expense of all listed lenders Hey @Obiero. Bill not signed. And please note I did not put the word 'yet' at the end. Its bound to be signed on Monday 29th Aug 2016 The bankers will visit statehouse with big brown envelop and this story will be forgotten. Smaller banks will fold
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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MaichBlack wrote:heri wrote:what is your experience in trying to get a loan?
I have an existing 5 year loan with a bank. But when i approached them for a new loan, they said they are only giving loans for a term of 6 months
That they are still working on new products which they will have by next month We said that will happen but some fellows here said it would not happen. Let me hear their comments. It has been a whole week and none of the "there will be no credit crunch" brigade has said anything!!! Hey fellas, please say something!!! 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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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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heri wrote:what is your experience in trying to get a loan?
I have an existing 5 year loan with a bank. But when i approached them for a new loan, they said they are only giving loans for a term of 6 months
That they are still working on new products which they will have by next month In a bar talk, I heard a banker say that if you are the type who has less than 4 transactions p.m( 1 deposit aka salary payment and 3 withdrawals ), you should try getting a loan from shylocks as they are now risk profiling customers. If Obiero did it, Who Am I?
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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heri wrote:what is your experience in trying to get a loan?
I have an existing 5 year loan with a bank. But when i approached them for a new loan, they said they are only giving loans for a term of 6 months
That they are still working on new products which they will have by next month That must be barclays. Move right away. They are not lending unsecured loans and they have stopped issuing credit cards. Move over to the two big boys KCB and COOP. For coop I can confirm here they have a crazy appetite for lending. Their monthly disbursements have grown 5-fold. Mostly ex-barclays customers. ION, can you imagine barclays used to be the market leader ? Now they are quickly exiting the top ten club.
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Rank: Member Joined: 7/8/2013 Posts: 126
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I am also in BBK, have a 6 year loan, they have taken me in circles, mara our company is not on their positive lending list. Have just confirmed that they suspended their Barclayloans and only dealing with scheme loans. wacha tuone watafika wapi na hio kichwa ngumu yao when the bills start coming in. bure
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Rank: Elder Joined: 6/23/2009 Posts: 13,555 Location: nairobi
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obiero wrote:sparkly wrote:obiero wrote:MaichBlack wrote:obiero wrote:muandiwambeu wrote:Ebenyo wrote:obiero wrote:I told you guys to sell off bank stocks in 2014. Luckily made it out of some major holdings in good time.. but a big percent of your portfolio is still in banks! so, what do you expect to be a fair hair cut on obieros portfolio as a result of kamwanaas house attempt to please Wanjiku. what will be the overall industries' hit in percentage. my fair guess from my lender's perspective (16-14.5)/(16*0.5)*100=18.75% conservetively thieves. COOP & HF will come out strongest in this.. Too little meat to be bitten out from the two. Plus HF has never been strong on deposits being only licensed to have current accounts a few months ago!! HF will have the least interest expense of all listed lenders Hey @Obiero. Bill not signed. And please note I did not put the word 'yet' at the end. Its bound to be signed on Monday 29th Aug 2016 The bankers will visit statehouse with big brown envelop and this story will be forgotten. Smaller banks will fold Here we are... Family & Sidian, then Ecobank http://www.businessdaily...36506-316lohz/index.html
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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