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Law Capping interest rates
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KNM
#781 Posted : Friday, August 26, 2016 7:05:03 PM
Rank: Member

Joined: 10/28/2008
Posts: 41
the deal wrote:


3. Banks which dont have alot of corporate fixed deposits.


Also lost on this one Think
The crowd will cheer your coronation as well as your beheading. People like a show, that's all.
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KNM
#782 Posted : Friday, August 26, 2016 7:16:18 PM
Rank: Member

Joined: 10/28/2008
Posts: 41
the deal wrote:
Impunity wrote:
the deal wrote:
Hello, tough times ...the banking sector used to be a darling o many...even a novice investor could close their eyes and pick a stock to ride...well this is no more...

I think after this purge has exhausted its blood trail & you are still standing...its better to check the following before investing in the sector

1. Banks with less reliance on interest income. A bank like CFC Stanbic comes to mind.

2. Banks whose regional subsidiaries contribute more than 20% of pretax profit I.e I&M & DTB?

3. Banks which dont have alot of corporate fixed deposits.



Elaborate point no. 3.


Most banks will convert savings & fixed deposits to current accounts to avoid paying heavy interest expenses...its easy to convert Kamau's fixed deposit into a current account than for Britam...what you will see going forward is banks coming up with stupid products just to move your account


I tend to disagree coz they have been enjoying(corporates) and paying(banks) good interest rates. Based on their larger deposits, they always enjoyed favorable rates. I mean even a common Joe/Jane would easily get 60-70% of T Bill rate on a fixed deposit account with only a couple of million.

I don't know. what say you on that?
The crowd will cheer your coronation as well as your beheading. People like a show, that's all.
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obiero
#783 Posted : Friday, August 26, 2016 7:28:05 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,256
Location: nairobi
Banks will sail strong through this one.. As late as Oct 2015 banks offered upto 21‰ interest on FDR with onward lending at 24%.. The law now supports a wider spread based on current CBR.. i.e 7% for deposits and 14% on debt.. Classification of the category client to qualify for 70% on CBR remains the only elephant in the room

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newfarer
#784 Posted : Friday, August 26, 2016 7:55:56 PM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
watesh wrote:
obiero wrote:
Boris Boyka wrote:
Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance.

Stop giving out such devious ideas

Hahaha thats what will be done

Is the cbr rate flat? Bs
They try this, mps are still there, we are sorted.
punda amecheka
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murchr
#785 Posted : Friday, August 26, 2016 7:57:22 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
newfarer wrote:
watesh wrote:
obiero wrote:
Boris Boyka wrote:
Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance.

Stop giving out such devious ideas

Hahaha thats what will be done

Is the cbr rate flat? Bs


Is it not?
"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
.
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newfarer
#786 Posted : Friday, August 26, 2016 8:01:54 PM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
murchr wrote:
newfarer wrote:
watesh wrote:
obiero wrote:
Boris Boyka wrote:
Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance.

Stop giving out such devious ideas

Hahaha thats what will be done

Is the cbr rate flat? Bs


Is it not?

They try this nonsense, they get sorted by mps. Coop bank has complied the sharks are reluctant. You know them by their deeds. Sharks
punda amecheka
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obiero
#787 Posted : Friday, August 26, 2016 8:04:11 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,256
Location: nairobi
newfarer wrote:
murchr wrote:
newfarer wrote:
watesh wrote:
obiero wrote:
Boris Boyka wrote:
Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance.

Stop giving out such devious ideas

Hahaha thats what will be done

Is the cbr rate flat? Bs


Is it not?

They try this nonsense, they get sorted by mps. Coop bank has complied the sharks are reluctant. You know them by their deeds. Sharks

That move by COOP is gold medal material.. Expect mass buyouts from laggard banks.. First mover advantage. Long live Gideon

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MaichBlack
#788 Posted : Friday, August 26, 2016 8:11:10 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,872
sparkly wrote:
14% is still too high.

I know people with mortgages at 3%, yes in Kenya and yes from the same same banks.

This is money from the employer not the bank. Like GOK gives select banks money for onward lending to civil servants and the interest is actually a service fee to the Bank. Just like Helb.

Fanya homework my friend.

Banks also give cheap loans to their employee but in that case they are acting as an employer.

Heck, the rest of us give our employees loans at 0%. Like when your house girl or shamba boy wants a 2,000/= loan. Do we use those rates in this argument???
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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obiero
#789 Posted : Friday, August 26, 2016 8:19:06 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,256
Location: nairobi
MaichBlack wrote:
sparkly wrote:
14% is still too high.

I know people with mortgages at 3%, yes in Kenya and yes from the same same banks.

This is money from the employer not the bank. Like GOK gives select banks money for onward lending to civil servants and the interest is actually a service fee to the Bank. Just like Helb.

Fanya homework my friend.

Banks also give cheap loans to their employee but in that case they are acting as an employer.

Heck, the rest of us give our employees loans at 0%. Like when your house girl or shamba boy wants a 2,000/= loan. Do we use those rates in this argument???

@sparkly must have outsourced that post.. Its not possible that he could have typed such tripe
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murchr
#790 Posted : Friday, August 26, 2016 8:36:30 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
obiero wrote:
MaichBlack wrote:
sparkly wrote:
14% is still too high.

I know people with mortgages at 3%, yes in Kenya and yes from the same same banks.

This is money from the employer not the bank. Like GOK gives select banks money for onward lending to civil servants and the interest is actually a service fee to the Bank. Just like Helb.

Fanya homework my friend.

Banks also give cheap loans to their employee but in that case they are acting as an employer.

Heck, the rest of us give our employees loans at 0%. Like when your house girl or shamba boy wants a 2,000/= loan. Do we use those rates in this argument???

@sparkly must have outsourced that post.. Its not possible that he could have typed such tripe


Laughing out loudly
"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
.
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