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Law Capping interest rates
Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard. It caught my attention due to the title he opted to give it: WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASSSource LINK:Personally, I believe a more fitting title would have been: Why Kenians Are Not Shopping For Cars In New Car ShowroomsHe did, however, raise a few issues regarding the interest rate cap. Could someone help me understand what he means by the assertion quoted below? Indulge me if you would. Quote:But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders
- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –
borrowers will be (are being) ultra-vetted for their ability to repay.
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Rank: Veteran Joined: 7/5/2010 Posts: 2,061 Location: Nairobi
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aemathenge wrote:On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard. It caught my attention due to the title he opted to give it: WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASSSource LINK:Personally, I believe a more fitting title would have been: Why Kenians Are Not Shopping For Cars In New Car ShowroomsHe did, however, raise a few issues regarding the interest rate cap. Could someone help me understand what he means by the assertion quoted below? Indulge me if you would. Quote:But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders
- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –
borrowers will be (are being) ultra-vetted for their ability to repay. The new standard is more stringent on the recognition and reporting of bad debts...right now banks are holding on and still reporting lots of loans that are not serviced regularly as potential interest earners..not with the new standard, such will go to the write off territory. It will hit P/Ls badly. Caveat: I explained the 'common man -g gist of it' that came away from the winded technical version from an expert. I could be off the mark, I am sure a wazuan expert will climb down from the mists of a hangover and do a better job 
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Rank: Member Joined: 12/17/2016 Posts: 225
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aemathenge wrote:On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard. It caught my attention due to the title he opted to give it: WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASSSource LINK:Personally, I believe a more fitting title would have been: Why Kenians Are Not Shopping For Cars In New Car ShowroomsHe did, however, raise a few issues regarding the interest rate cap. Could someone help me understand what he means by the assertion quoted below? Indulge me if you would. Quote:But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders
- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –
borrowers will be (are being) ultra-vetted for their ability to repay. Excuse my ignorance; aren't these vehicles a collateral and this loan therefore qualifies as secured loan? Reflection Eternal
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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Flo-ology wrote:aemathenge wrote:On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard. It caught my attention due to the title he opted to give it: WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASSSource LINK:Personally, I believe a more fitting title would have been: Why Kenians Are Not Shopping For Cars In New Car ShowroomsHe did, however, raise a few issues regarding the interest rate cap. Could someone help me understand what he means by the assertion quoted below? Indulge me if you would. Quote:But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders
- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –
borrowers will be (are being) ultra-vetted for their ability to repay. Excuse my ignorance; aren't these vehicles a collateral and this loan therefore qualifies as secured loan? Not all the loans have the cars as collateral. Sometimes the car you are buying is in Japan by the time you are applying for the loan. For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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winmak wrote:Flo-ology wrote:aemathenge wrote:On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard. It caught my attention due to the title he opted to give it: WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASSSource LINK:Personally, I believe a more fitting title would have been: Why Kenians Are Not Shopping For Cars In New Car ShowroomsHe did, however, raise a few issues regarding the interest rate cap. Could someone help me understand what he means by the assertion quoted below? Indulge me if you would. Quote:But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders
- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –
borrowers will be (are being) ultra-vetted for their ability to repay. Excuse my ignorance; aren't these vehicles a collateral and this loan therefore qualifies as secured loan? Not all the loans have the cars as collateral. Sometimes the car you are buying is in Japan by the time you are applying for the loan. Most of them have the cars as collateral... possunt quia posse videntur
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Rank: Member Joined: 12/17/2016 Posts: 225
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maka wrote:winmak wrote:Flo-ology wrote:aemathenge wrote:On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard. It caught my attention due to the title he opted to give it: WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASSSource LINK:Personally, I believe a more fitting title would have been: Why Kenians Are Not Shopping For Cars In New Car ShowroomsHe did, however, raise a few issues regarding the interest rate cap. Could someone help me understand what he means by the assertion quoted below? Indulge me if you would. Quote:But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders
- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –
borrowers will be (are being) ultra-vetted for their ability to repay. Excuse my ignorance; aren't these vehicles a collateral and this loan therefore qualifies as secured loan? Not all the loans have the cars as collateral. Sometimes the car you are buying is in Japan by the time you are applying for the loan. Most of them have the cars as collateral... Exactly my point. This article claiming that car sale is low because bank has refused to finance purchases/loans is misplaced. My bank keeps on sending emails on car asset finance. It is now a norm for individuals and business to blame everything on rate-cap. Reflection Eternal
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Rank: Elder Joined: 6/23/2009 Posts: 14,223 Location: nairobi
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More distress for the small and now even the medium banks http://www.businessdaily...74558-ivexjbz/index.html
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Rank: Elder Joined: 12/4/2009 Posts: 10,808 Location: NAIROBI
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In 2016, mortgage loan accounts decreased by 1.5 percent from 24,458 to 24,085 after commercial banks tightened credit standards while the average mortgage size increased by 9% from KShs. 8.3 million in 2015 to KShs. 9.1 million in 2016 as a result of increasing property prices. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 7/8/2013 Posts: 126
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SCB sets aside 10b for unsecured lending. anyone applied for this?
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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omhangla wrote:SCB sets aside 10b for unsecured lending. anyone applied for this? Positioning for Members fallout now that JM is pulling the plug on salary loans For investors as a whole, returns decrease as motion increases ~ WB
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