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Law Capping interest rates
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Sufficiently Philanga....thropic wrote:Impunity wrote:Obi 1 Kanobi wrote:Kudos to those who believed in the good fight.
But for some reason, I have a feeling that there's a catch somewhere. Waiting for the implementation details. Bank will bring back the colonial banking chrages like ledger fees, ATM fee, annual fee etc. My account already has that....what else? possunt quia posse videntur
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Rank: Member Joined: 2/24/2015 Posts: 154 Location: Nairobi
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Sufficiently Philanga....thropic wrote:Simba must bow down to THE 20s Don't think so. From Fitch, "The immediate impact will be a sharp reduction in net interest margins for all banks. But large players, with stronger franchises and more diverse business models, should be able to attract new business and, with greater volumes, offset some of the squeeze on profitability." "If the rate cap is introduced and assuming no change in the CBR, this would mean that no loan could be priced above 14.5%, almost 400bp below the current average lending rate. Rate caps could also force loan prices to converge, forcing lenders to compete more aggressively on products and service. This is more likely to benefit larger banks." Immediately after word came through that the President signed, institutional investors bought over 1.5 million KCB shares @ 33, clearing out a bunch of small standing sell orders that have been sitting there for ages. Expect some interesting moves as people reposition, but KCB is better positioned than most.
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Rank: Member Joined: 7/21/2010 Posts: 249 Location: nairobi
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maka wrote:The Great wrote:Why are we still on this topic? He was never signing. Arguement for or against dont help anyone.
Market ime beat we need to talk about something/anything. http://www.businessdaily...222-10y7tm8z/index.html
..desire to succeed is always fighting with fear of failure..
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Rank: New-farer Joined: 3/12/2014 Posts: 96
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maka wrote:Sufficiently Philanga....thropic wrote:Impunity wrote:Obi 1 Kanobi wrote:Kudos to those who believed in the good fight.
But for some reason, I have a feeling that there's a catch somewhere. Waiting for the implementation details. Bank will bring back the colonial banking chrages like ledger fees, ATM fee, annual fee etc. My account already has that....what else? account auditing fee 
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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Swenani wrote:If the bank are going to lend at 14.5%(on reducing balance), then saccos should lend at 5%(on principal) for sacco borrowing/lending to make any economic sense. And my fixed depsit account must earn me minimum 7%pa (70% x 10.5) The Kenyan banks have found themselves between a rock and a hard-hot place. If they cant lend me at 14% then they must pay at rate that is half the bank rate...7%.  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Quote:Angelica _ann, Guest (68), holycow, Impunity, iris, maina20, maka, moneydust, Much Know, newfarer, Obi 1 Kanobi, penkon, Rahatupu, researchfirst, Swenani Bank employees If Obiero did it, Who Am I?
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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maka wrote:Sufficiently Philanga....thropic wrote:Impunity wrote:Obi 1 Kanobi wrote:Kudos to those who believed in the good fight.
But for some reason, I have a feeling that there's a catch somewhere. Waiting for the implementation details. Bank will bring back the colonial banking chrages like ledger fees, ATM fee, annual fee etc. My account already has that....what else? Move the ledger fee from Kes.500 pm to Kes.5000. ATM rate from 30 bob to 300 bob. Minimum amount to earn the interest is Kes.100,000. Mtado? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 1/31/2007 Posts: 304
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researchfirst wrote:Sufficiently Philanga....thropic wrote:Simba must bow down to THE 20s Don't think so. From Fitch, "The immediate impact will be a sharp reduction in net interest margins for all banks. But large players, with stronger franchises and more diverse business models, should be able to attract new business and, with greater volumes, offset some of the squeeze on profitability." "If the rate cap is introduced and assuming no change in the CBR, this would mean that no loan could be priced above 14.5%, almost 400bp below the current average lending rate. Rate caps could also force loan prices to converge, forcing lenders to compete more aggressively on products and service. This is more likely to benefit larger banks." Immediately after word came through that the President signed, institutional investors bought over 1.5 million KCB shares @ 33, clearing out a bunch of small standing sell orders that have been sitting there for ages. Expect some interesting moves as people reposition, but KCB is better positioned than most. It makes no sense for anyone to be buying bank shares at this time especially on such volumes,unless they had not heard the news before making the order,because I can assure you all bank stocks will be down tomorrow and the days after.
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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We can now import large cargo of crude oil at a more friendly interest "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 9/15/2006 Posts: 3,907
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Law Capping interest rates
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