Rank: Elder Joined: 2/26/2012 Posts: 15,980
|
FRM2011 wrote:FRM2011 wrote:newfarer wrote:Bankers here are scaremongering.I want to get that 7% on my deposit.the banks won't refuse to take my cash deposits by setting unreasonable rules, the ceo of the bank will be Put inside for going against the law They are really terrified. See some numbers below. Should the bill become law, this is the change in interest expense for the top five. KCB rise from 17bn to 29bn Equity rise from 6.8b to 21b Co-op from 12.1b to 18.5b Barclays from 4.2b to 11.4b Stanchart from 3.9b to 12b. Co-op with an average deposit rate of 5.5% would be the least hit. But I saw something in their books that must be terrifying them. You have heard that threat about not lending to high risk borrowers like unsecured personal loans. Their loan book is composed of 35% unsecured personal loans. It earns them the highest interest income. Should they even slow down lending to that category, let alone stop, they would be in loss making territory right away. For equity bank, let's just say James Mwangi and co. would no longer be billionaires. Some guys woke up as billionaires and they will be going back to bed as millionaires. JM, Gideon Muriuki. What do you mean if that is the deposit rate. What is being capped is the lending rate right? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
|