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Law Capping interest rates
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obiero
#2021 Posted : Monday, May 29, 2017 6:51:47 AM
Rank: Elder

Joined: 6/23/2009
Posts: 14,232
Location: nairobi
NIC becomes one more example of a struggling lender http://www.businessdaily...45670-jo884uz/index.html
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Musimo
#2022 Posted : Monday, May 29, 2017 11:35:38 AM
Rank: Member

Joined: 9/3/2015
Posts: 118
Location: Nairobi
Query: For small banks, has the rate cap lowered or raised their cost of deposits and savings? For example, looking at faulu bank, who a few ago were offering upto 12.5% interest on funds deposited with them in a savings account for a duration of 3 years, I presume currently that they more or less have the same amount as other banks for deposits and savings.
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obiero
#2023 Posted : Monday, May 29, 2017 1:37:49 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,232
Location: nairobi
Musimo wrote:
Query: For small banks, has the rate cap lowered or raised their cost of deposits and savings? For example, looking at faulu bank, who a few ago were offering upto 12.5% interest on funds deposited with them in a savings account for a duration of 3 years, I presume currently that they more or less have the same amount as other banks for deposits and savings.

The issue is that of trust.. Most sensible clients will opt for say 7% at a large bank than risk it all at 8% on a smaller bank
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mkeiy
#2024 Posted : Wednesday, May 31, 2017 10:57:17 AM
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Joined: 1/27/2012
Posts: 851
Location: Nairobi
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wukan
#2025 Posted : Wednesday, May 31, 2017 1:18:30 PM
Rank: Veteran

Joined: 11/13/2015
Posts: 1,654
Quote:
Family Bank has posted a Sh259.57 million after-tax loss for the first three months of the year, citing a sharp rise in bad loans and the interest rate cap which ate into its profitability.

Gross non-performing loans jumped 92.14 per cent or Sh3.98 billion to Sh8.3 billion.


Sidian bank reports a loss of Shs 79.2 million.

Malenge ni mboga, ama namna gani?
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mlennyma
#2026 Posted : Wednesday, May 31, 2017 1:47:41 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
wukan wrote:
Quote:
Family Bank has posted a Sh259.57 million after-tax loss for the first three months of the year, citing a sharp rise in bad loans and the interest rate cap which ate into its profitability.

Gross non-performing loans jumped 92.14 per cent or Sh3.98 billion to Sh8.3 billion.


Sidian bank reports a loss of Shs 79.2 million.

Malenge ni mboga, ama namna gani?

they should be careful not to cause customer panic
"Don't let the fear of losing be greater than the excitement of winning."
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mkeiy
#2027 Posted : Wednesday, May 31, 2017 6:06:14 PM
Rank: Member

Joined: 1/27/2012
Posts: 851
Location: Nairobi
mlennyma wrote:
wukan wrote:
Quote:
Family Bank has posted a Sh259.57 million after-tax loss for the first three months of the year, citing a sharp rise in bad loans and the interest rate cap which ate into its profitability.

Gross non-performing loans jumped 92.14 per cent or Sh3.98 billion to Sh8.3 billion.


Sidian bank reports a loss of Shs 79.2 million.

Malenge ni mboga, ama namna gani?

they should be careful not to cause customer panic


That could be a good thing in disguise. Forcing some review of the cap.
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obiero
#2028 Posted : Wednesday, May 31, 2017 6:15:16 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,232
Location: nairobi
obiero wrote:
obiero wrote:
obiero wrote:
obiero wrote:
sparkly wrote:
obiero wrote:
MaichBlack wrote:
obiero wrote:
[quote=muandiwambeu][quote=Ebenyo][quote=obiero]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 fires it's staff https://citizentv.co.ke/...fs-to-cut-costs-143841/
and then Sidian lays off 108 workers http://www.businessdaily...9550-3428588-151f209z/,
then Ecobank collapses 9 branches http://www.businessdaily...6506-316lohz/index.html
First Community Bank let go of a quarter of its staff http://www.the-star.co.k...osed-number-of_c1451638
And now BoA closes 12 branches. Sad state of affairs http://www.businessdaily...2926-jp394sz/index.html[/quote]
Sidian, NBK, Family, HF, NIC struggling.. Small banks shall fold

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  | | Edit by user: Wednesday, May 31, 2017 6:16 PM | Reason: Not specified
Obi 1 Kanobi
#2029 Posted : Monday, June 05, 2017 10:26:15 AM
Rank: Elder

Joined: 7/23/2008
Posts: 3,017
The reality of the interest rates caps is finally coming out. According to CBK latest data, rates cap will be good for the economy in the medium term.

Check out the latest East African paper. Can't find link online though.

Equity is also reverting to robust lending

The sky is falling brigade please read and calm down, the cap stays on.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Ngalaka
#2030 Posted : Tuesday, June 06, 2017 11:31:01 AM
Rank: Veteran

Joined: 10/29/2008
Posts: 1,566
Obi 1 Kanobi wrote:
The reality of the interest rates caps is finally coming out. According to CBK latest data, rates cap will be good for the economy in the medium term.

Check out the latest East African paper. Can't find link online though.

Equity is also reverting to robust lending

The sky is falling brigade please read and calm down, the cap stays on.

Eh? Eh? Eh?
Isuni yilu yi maa me muyo - ni Mbisuu
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303 Pages«<201202203204205>»
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