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Law Capping interest rates
Rank: Elder Joined: 6/20/2007 Posts: 2,074 Location: Lagos, Nigeria
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Ericsson wrote:Barclays bank Kenya share price back to pre-interest rates repeal level Yep @Ericsson The same with STANCHART. A time to load up more the high dividend yield reliables. I expect BBK lower at 11.20 in days ahead and stanchart at 190 to 195. With this one can be sure of at least 9% dividend yield (FY ie interim and final in 2020) Here is the mathematics ON BBK 0.9 final & 0.2 interim = 1.1 Div yield = 1.1/11.20% = 9.8% (Gross) ON STANCHART 14.0 final + 5.0 interim= 19 Div yield = 19/195%= 9.7% (Gross) These 2 counters are real retirees (income) counters. Not so good for speculators. The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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https://www.businessdail...52380-8kitvz/index.html
The top nine banks- classified by CBK as large—added 337,004 accounts with more than Sh100, 000 between January 2016 and December 2018. In contrast, the small and medium-sized banks witnessed a drop in the number of quality savers by 176, 244 accounts or 36.5 percent to 305,688 last year. In the three years to 2018, KCB , Equity, Co-operative Bank, Standard Chartered Bank, Barclays Bank of Kenya, Diamond Trust Bank, Commercial Bank of Africa Limited, Stanbic Bank Kenya and I&M Bank all gained more customers with savings above Sh100,000. But small and mid-sized lenders like Spire Bank, Habib Bank AG Zurich, Sidian Bank, Paramount Bank, Guardian Bank Limited, Consolidated Bank, Bank of Africa, Development Bank and First Community Bank reported declines in accounts holding over Sh100, 000. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 11/13/2015 Posts: 1,654
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Kenya's tiny shrinking middle class...we have a structural problem with our economy which the repeal of rate cap won't solve Quote:The number of Kenyans with more than Sh100, 000 as savings in their bank accounts dropped for the first time in more than 13 years, reflecting the cash flow problems in an economy plagued by job cuts and modest economic activity.
The CBK data shows that savers with more than Sh100,000 in their bank accounts dropped to 1,445, 590 last year, down from 1,583,000 in 2017 — the first fall since 2006 when the regulator began making such deposit data public.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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wukan wrote:Kenya's tiny shrinking middle class...we have a structural problem with our economy which the repeal of rate cap won't solve Correct. GoK/Treasury will crowd out private sector in getting credit from the commercial banks Quote:The number of Kenyans with more than Sh100, 000 as savings in their bank accounts dropped for the first time in more than 13 years, reflecting the cash flow problems in an economy plagued by job cuts and modest economic activity.
The CBK data shows that savers with more than Sh100,000 in their bank accounts dropped to 1,445, 590 last year, down from 1,583,000 in 2017 — the first fall since 2006 when the regulator began making such deposit data public. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Kenyan lawmakers passed law on Wednesday requiring both national and county govts to hold accounts with the CBK. National and regional govt payments will be made from CBK acs. Separate proposed law to have ministries and state corporations hold acs at CBK/State owned banks -Source Bloomberg The argument has been that the national govt has been borrowing while some counties/ministries/corporations have been holding surplus cash which unnecessarily increases borrowing. Probably why CBK raised its capital? this is the trend its called single transaction account its been implemented in tanzania already all revenues and payments are processed centrally for the entire goverment. If all payments are automated you will see an increase in revenue Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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https://pbs.twimg.com/me...ormat=jpg&name=largeWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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I have absolutely NO idea what THIS means. None whatsoever. Would someone please be kind enough and interpret what Inzillia Sasi in going on about? Please? Thank you. Copy and Paste Extract Quote:Stanbic Bank Goes for the Tiered Interest Rate Model After Cap Removal
By Inzillia Sasi - November 20, 2019
As for the decision to welcome the uncapped interest, the lender holds that in the wider interest of the economy to have a low cost of credit, there is a need to focus more on the drivers and the underlying causes of the high cost of credit as a complementary approach to fix the price of credit by legislation.
While the bank may be cautious not to scare away existing customers and still attract new borrowers, sooner or later, both the risky and borrowers will be caught up in the differentiated interest rates, that commercial banks are quickly adopting. Source Link:
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Rank: Member Joined: 12/8/2006 Posts: 104
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:) Baffling indeed. Either a terrible author or this is a bot. Here's another piece "Much is not said about women in business and the fact that they face twice the hurdles of making a name for themselves in the male-dominated industry has not been addressed with the seriousness it deserves." One of the key triggers for suspecting a bot (esp. using algorithms written by non native english speakers) is the grammar. It is ALMOST intelligible, but not quite.
On the other end, we have the makaratasi media that writes 1 hr. before deadline after numerous JD's
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Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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passiveinvestor wrote::) Baffling indeed. Either a terrible author or this is a bot. Here's another piece "Much is not said about women in business and the fact that they face twice the hurdles of making a name for themselves in the male-dominated industry has not been addressed with the seriousness it deserves." One of the key triggers for suspecting a bot (esp. using algorithms written by non native english speakers) is the grammar. It is ALMOST intelligible, but not quite.
On the other end, we have the makaratasi media that writes 1 hr. before deadline after numerous JD's Pheew. Thank you. I thought old age was catching up on me.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,654
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wukan wrote:Kenya's tiny shrinking middle class...we have a structural problem with our economy which the repeal of rate cap won't solve Quote:The number of Kenyans with more than Sh100, 000 as savings in their bank accounts dropped for the first time in more than 13 years, reflecting the cash flow problems in an economy plagued by job cuts and modest economic activity.
The CBK data shows that savers with more than Sh100,000 in their bank accounts dropped to 1,445, 590 last year, down from 1,583,000 in 2017 — the first fall since 2006 when the regulator began making such deposit data public. repeal of rate cap did not solve the problem and the lowest interest rate since the 80s has not stopped the default on loans. People still broke Quote:Banks have cut the cost of credit to levels last seen in the early 1980s and reduced appetite to extend credit to high-risk borrowers in the wake of the Covid-19 pandemic that has raised defaults to a 13-year high. Latest Central Bank of Kenya (CBK) data shows that lending rates fell to an average of 11.75 percent in September following a consistent drop in the regulator’s benchmark lending rate. This is the lowest average lending rate since the CBK started disclosing the rate in July 1991 during the reign of the then Moi-era governor Eric Kotut and matches annual borrowing costs disclosed by the World Bank in 1980. The drop has eased fears of a rise in the cost of credit after the removal of the interest rate cap last November following pressure from banks and the International Monetary Fund (IMF). The removal of the legal cap led to fears of a likely return to the era of high cost of loans, which had at one point hit 25 percent. https://www.businessdail...vel-since-1980s-3209128
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