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Law Capping interest rates
Rank: Member Joined: 11/17/2018 Posts: 173 Location: Mars
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Looks like the bear may be back. If drawdown from recent highs exceeds 20%, we are back into bear territor.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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Extraterrestrial wrote:Looks like the bear may be back. If drawdown from recent highs exceeds 20%, we are back into bear territor. For some of us to board For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Elder Joined: 7/22/2009 Posts: 7,838
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newfarer wrote:Queen wrote:newfarer wrote:Ericsson wrote:https://www.businessdailyafrica.com/corporate/companies/Comarco-to-restructure-Sh3bn-loans/4003102-5339016-7gg8gm/index.html
The biggest challenge for banks post interest rates cap law repeal will be non performing loans. Banks are not going to be quick in revising the rates..they know we are watching.. they know mpigs are neck high in debts. they know Kenyans are already broke. What do you mean "we are watching" and "the MPs are heavily indebted"..... What can we as Wanjikus do? As Maraga said, hii nchi ina wenyewe. Are you suggesting that all these MPigs when they were passing the bill they momentarily forgot that they are heavily indebted? Lets just say as things stand, we are in deep sh*t. “We are not going to see a massive change. As a leader in the industry, we don’t see an opportunity to go back to the old behaviour of high rates,” he added.KCB CEO Joshua oigara wenyewe wamesema Have you been living in Kenya??? Even when people were paying 25%, the (advertised) "base rate" was around 18%. But your risk level had to be at almost 0.00% to get a loan at that rate. 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: 7/22/2009 Posts: 7,838
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And what people are not seeing is the interest spread (though it was sorted earlier). The banks can pay 2% on your deposits and lend at 17%. That is a 15% spread. Compare that with the original post caps spread of 4%!!! 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: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Extraterrestrial wrote:Looks like the bear may be back. If drawdown from recent highs exceeds 20%, we are back into bear territor. It was coming, Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/22/2009 Posts: 7,838
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Queen wrote:MaichBlack wrote:FUNKY wrote:https://www.businessdailyafrica.com/news/Interest-on-risky-loans-forecast-at-16pc/539546-5339802-ks7r6az/index.html ^ "The MPs shielded the people with existing loans from higher rates...". Where did this writer get this from?? Is there something I am missing? I am not aware of such an amendment going through. The Finance committee tabled their report which contained an amendment on existing loans. There was lack of quorum in the house and therefore the report, together with the amendment therein, was never debated. The pertinent question should now be:- is it these committee's report that was passed in lieu of quorum or was it the President's memo to the house that was passed as it were without any amendment. My understanding is that the house was meant to debate and pass the Finance committee's report and not the president's memo directly. Am however not a lawyer. They were to accept or reject the president's memorandum. To reject, they needed 2/3 majority which they did not get. So the "accepted" it (by default). 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: 3/19/2010 Posts: 3,505 Location: Uganda
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MaichBlack wrote:newfarer wrote:Queen wrote:newfarer wrote:Ericsson wrote:https://www.businessdailyafrica.com/corporate/companies/Comarco-to-restructure-Sh3bn-loans/4003102-5339016-7gg8gm/index.html
The biggest challenge for banks post interest rates cap law repeal will be non performing loans. Banks are not going to be quick in revising the rates..they know we are watching.. they know mpigs are neck high in debts. they know Kenyans are already broke. What do you mean "we are watching" and "the MPs are heavily indebted"..... What can we as Wanjikus do? As Maraga said, hii nchi ina wenyewe. Are you suggesting that all these MPigs when they were passing the bill they momentarily forgot that they are heavily indebted? Lets just say as things stand, we are in deep sh*t. “We are not going to see a massive change. As a leader in the industry, we don’t see an opportunity to go back to the old behaviour of high rates,” he added.KCB CEO Joshua oigara wenyewe wamesema Have you been living in Kenya??? Even when people were paying 25%, the (advertised) "base rate" was around 18%. But your risk level had to be at almost 0.00% to get a loan at that rate. let's say wacha tuone.asin lets wait and see. punda amecheka
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Rank: Elder Joined: 7/22/2009 Posts: 7,838
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winmak wrote:Extraterrestrial wrote:Looks like the bear may be back. If drawdown from recent highs exceeds 20%, we are back into bear territor. For some of us to board True or load up some more!!! Value is more important than price. And buyers love discounts/low prices. 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: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Extraterrestrial wrote:Looks like the bear may be back. If drawdown from recent highs exceeds 20%, we are back into bear territor. With no company being cum dividend we may even go much lower than before news of rate cap trickled in. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Law Capping interest rates
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