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141 Pages«<135136137138139>»
Law Capping interest rates
jmbada
#2721 Posted : Tuesday, February 26, 2019 1:15:15 PM
Rank: Member


Joined: 1/1/2011
Posts: 366
muandiwambeu
#2722 Posted : Tuesday, February 26, 2019 7:07:12 PM
Rank: Veteran


Joined: 8/28/2015
Posts: 1,128
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%

U have to be efficient to survive. Enslaving others with inefficient systems won't work anymore. Smart brains leads always.
,Behold, a sower went forth to sow;....
FRM2011
#2723 Posted : Tuesday, February 26, 2019 7:18:22 PM
Rank: Elder


Joined: 11/5/2010
Posts: 2,328
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%



There is such a huge opportunity for one bank or NBFI to take over the SME niche that has been completely starved of credit.

Asset finance is almost impossible to get nowadays. Even the bank that became big through asset finance, NIC, have become too picky nowadays.

Faulu microfinance is part of the UAP-Old Mutual group. They are not affected by the interest capping law as a NBFI. There are 1,000s of SMEs who can pay 19-21% comfortably if the credit was available. But Faulu has joined Equity, Coop, KCB, Family in denying credit to the SMEs.

Pathetic strategy.
bird_man
#2724 Posted : Tuesday, February 26, 2019 9:13:49 PM
Rank: Veteran


Joined: 11/2/2006
Posts: 1,202
Location: Nairobi
FRM2011 wrote:
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%



There is such a huge opportunity for one bank or NBFI to take over the SME niche that has been completely starved of credit.

Asset finance is almost impossible to get nowadays. Even the bank that became big through asset finance, NIC, have become too picky nowadays.

Faulu microfinance is part of the UAP-Old Mutual group. They are not affected by the interest capping law as a NBFI. There are 1,000s of SMEs who can pay 19-21% comfortably if the credit was available. But Faulu has joined Equity, Coop, KCB, Family in denying credit to the SMEs.

Pathetic strategy.


How do they lend at 19-21% with interest capping at 13%?
Formally employed people often live their employers' dream & forget about their own.
Angelica _ann
#2725 Posted : Tuesday, February 26, 2019 10:44:12 PM
Rank: Elder


Joined: 12/7/2012
Posts: 10,558
bird_man wrote:
FRM2011 wrote:
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%



There is such a huge opportunity for one bank or NBFI to take over the SME niche that has been completely starved of credit.

Asset finance is almost impossible to get nowadays. Even the bank that became big through asset finance, NIC, have become too picky nowadays.

Faulu microfinance is part of the UAP-Old Mutual group. They are not affected by the interest capping law as a NBFI. There are 1,000s of SMEs who can pay 19-21% comfortably if the credit was available. But Faulu has joined Equity, Coop, KCB, Family in denying credit to the SMEs.

Pathetic strategy.


How do they lend at 19-21% with interest capping at 13%?


Faulu is a microfinance institution & therefore is not affected by the rate cap!!!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
wukan
#2726 Posted : Wednesday, February 27, 2019 10:33:25 AM
Rank: Veteran


Joined: 11/13/2015
Posts: 1,127
FRM2011 wrote:
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%



There is such a huge opportunity for one bank or NBFI to take over the SME niche that has been completely starved of credit.

Asset finance is almost impossible to get nowadays. Even the bank that became big through asset finance, NIC, have become too picky nowadays.

Faulu microfinance is part of the UAP-Old Mutual group. They are not affected by the interest capping law as a NBFI. There are 1,000s of SMEs who can pay 19-21% comfortably if the credit was available. But Faulu has joined Equity, Coop, KCB, Family in denying credit to the SMEs.

Pathetic strategy.


Return on capital vs return of capital. Banks and MFIs have to weigh the risk. Banks in Argentina have not been lending for 15 years now and they are ok.

Let's say an SME took 10m loan for 5 years paying 227k per month then due to cut on consumer spending sales drop to 150k per month, a cut on interest rates to 11.5% wouldn't rescue the business. It only brings monthly payment down to 219K.

The SME needs more of consumer spending not a cut in interest rates. Even if you cut the interest rate to zero the SME will still default on the principal. The SME owner will look at his monthly sales and scale down on his credit demand.

You can read what @mnandii calls the social mood here on wazua where wazuans are more interested in discussing bizarre murders than MAkiba bond.
AndyC
#2727 Posted : Wednesday, February 27, 2019 1:33:48 PM
Rank: Member


Joined: 4/21/2015
Posts: 104
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%


Link?
Ericsson
#2728 Posted : Wednesday, February 27, 2019 1:38:23 PM
Rank: Elder


Joined: 12/4/2009
Posts: 6,891
Location: NAIROBI
AndyC wrote:
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%


Link?

Tough Terms and conditions
Angelica _ann
#2729 Posted : Wednesday, February 27, 2019 2:13:30 PM
Rank: Elder


Joined: 12/7/2012
Posts: 10,558
Ericsson wrote:
AndyC wrote:
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%


Link?

Tough Terms and conditions


C&P here!!!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Angelica _ann
#2730 Posted : Wednesday, February 27, 2019 8:53:06 PM
Rank: Elder


Joined: 12/7/2012
Posts: 10,558
Let me leave this here, though this deal was doomed from the start......


https://www.google.com/a...-asAMP-6rbhej/index.html
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Chaka
#2731 Posted : Wednesday, February 27, 2019 9:55:50 PM
Rank: Veteran


Joined: 2/16/2007
Posts: 2,079
One of them must be to open an account(salary) with them so that they can pay themselves first when installments are due...
Ericsson wrote:
AndyC wrote:
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%


Link?

Tough Terms and conditions

Horton
#2732 Posted : Thursday, February 28, 2019 8:16:05 AM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,427
Location: Nairobi
Treasury once again proposes repealing of rate cap

https://kenyanwallstreet...-repealing-of-rate-caps/
maka
#2733 Posted : Thursday, March 14, 2019 5:18:38 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,078
Location: Nairobi
[quote=Horton]Treasury once again proposes repealing of rate cap

https://kenyanwallstreet...repealing-of-rate-caps/[/quote]


BREAKING! High Court rules that law setting limits on bank interest rates (the rate capping law) unconstitutional.
possunt quia posse videntur
murchr
#2734 Posted : Thursday, March 14, 2019 5:25:39 PM
Rank: Elder


Joined: 2/26/2012
Posts: 14,609
maka wrote:
Horton wrote:
Treasury once again proposes repealing of rate cap

https://kenyanwallstreet...repealing-of-rate-caps/



BREAKING! High Court rules that law setting limits on bank interest rates (the rate capping law) unconstitutional.


Applause Applause Applause Applause Applause Applause Applause Applause Applause
"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
.
mlennyma
#2735 Posted : Thursday, March 14, 2019 6:24:48 PM
Rank: Elder


Joined: 7/21/2010
Posts: 5,941
Location: nairobi
murchr wrote:
maka wrote:
Horton wrote:
Treasury once again proposes repealing of rate cap

https://kenyanwallstreet...repealing-of-rate-caps/



BREAKING! High Court rules that law setting limits on bank interest rates (the rate capping law) unconstitutional.


Applause Applause Applause Applause Applause Applause Applause Applause Applause

I will be in the market tomorrow buying kcb
"Don't let the fear of losing be greater than the excitement of winning."
AndyC
#2736 Posted : Thursday, March 14, 2019 6:41:54 PM
Rank: Member


Joined: 4/21/2015
Posts: 104
mlennyma wrote:
murchr wrote:
maka wrote:
Horton wrote:
Treasury once again proposes repealing of rate cap

https://kenyanwallstreet...repealing-of-rate-caps/



BREAKING! High Court rules that law setting limits on bank interest rates (the rate capping law) unconstitutional.


Applause Applause Applause Applause Applause Applause Applause Applause Applause

I will be in the market tomorrow buying kcb


They give us one year to adjust and hope legislation will be passed to repeal. This is so vague...can't they make a clear cut decision.

Ericsson
#2737 Posted : Thursday, March 14, 2019 6:57:15 PM
Rank: Elder


Joined: 12/4/2009
Posts: 6,891
Location: NAIROBI
AndyC wrote:
mlennyma wrote:
murchr wrote:
maka wrote:
Horton wrote:
Treasury once again proposes repealing of rate cap

https://kenyanwallstreet...repealing-of-rate-caps/



BREAKING! High Court rules that law setting limits on bank interest rates (the rate capping law) unconstitutional.


Applause Applause Applause Applause Applause Applause Applause Applause Applause

I will be in the market tomorrow buying kcb


They give us one year to adjust and hope legislation will be passed to repeal. This is so vague...can't they make a clear cut decision.



Amazing what a timing.This has been done to satisfy IMF conditions for a bailout package.
mwekez@ji
#2738 Posted : Thursday, March 14, 2019 7:24:06 PM
Rank: Chief


Joined: 5/31/2011
Posts: 5,081

Kenya court axes banking rates cap, suspends implementation for a year

https://mobile.reuters.com/article/amp/af/idAFL8N2115OF
Obi 1 Kanobi
#2739 Posted : Thursday, March 14, 2019 7:26:30 PM
Rank: Elder


Joined: 7/23/2008
Posts: 3,007
Sounds ridiculous to me, how is a commercial decision tied to the constitution?

But this being Kenya, anything is a go.

Really keen to see how banks will communicate decisions to adjust peoples rate up, due to risk. If one has been consistently paying, then obviously their risk was correctly priced, ama namna gani my friends.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
murchr
#2740 Posted : Thursday, March 14, 2019 7:59:03 PM
Rank: Elder


Joined: 2/26/2012
Posts: 14,609
Obi 1 Kanobi wrote:
Sounds ridiculous to me, how is a commercial decision tied to the constitution?

But this being Kenya, anything is a go.

Really keen to see how banks will communicate decisions to adjust peoples rate up, due to risk. If one has been consistently paying, then obviously their risk was correctly priced, ama namna gani my friends.


Ruling has been set aside for 12 months to give the Mpigs time to formulate another law.

"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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