Jon Jones wrote:This is how I expect the situation to unfold.
1. Equity, Family Bank, Co-op etc, who largely cater for Wanjiku will be the worst affected because they are technically in a riskier business. The quality of their customers is very bad i.e largely Wanjiku.
2. KCB, I&M, DTB etc that cater for the upper middle class and the affluent (for KCB it is institutions), they will be better positioned because their customers have a higher value and less risk.
Assuming two banks lend at 14.5%, Equity and I & M, I & M will have less to worry about considering the nature of its customers. This bill is a kick in the nuts of James Mwangi and Gideon Muriuki
I beg to differ,banks that have a wide footprint and bank the ordinary mwananchi will have access to deposits at almost zero cost since they will be paying nothing for the small deposits in their customer accounts. Infact the banks that will have the lowest cost on their deposits will win the coming war.
With the capping it means the battle for quality clients is on,it will all be about who can offer the lowest of the lowest interest rate to that bluechip customer.