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118 Pages«<115116117118>
Law Capping interest rates
aemathenge
#2321 Posted : Sunday, August 27, 2017 1:24:31 PM
Rank: Elder


Joined: 10/18/2008
Posts: 2,663
Location: Kerugoya
On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard.

It caught my attention due to the title he opted to give it:

WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASS

Source LINK:

Personally, I believe a more fitting title would have been:

Why Kenians Are Not Shopping For Cars In New Car Showrooms

He did, however, raise a few issues regarding the interest rate cap.

Could someone help me understand what he means by the assertion quoted below?

Indulge me if you would.

Quote:
But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders

- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –

borrowers will be (are being) ultra-vetted for their ability to repay.
quicksand
#2322 Posted : Sunday, August 27, 2017 1:39:47 PM
Rank: Veteran


Joined: 7/5/2010
Posts: 1,894
Location: Nairobi
aemathenge wrote:
On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard.

It caught my attention due to the title he opted to give it:

WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASS

Source LINK:

Personally, I believe a more fitting title would have been:

Why Kenians Are Not Shopping For Cars In New Car Showrooms

He did, however, raise a few issues regarding the interest rate cap.

Could someone help me understand what he means by the assertion quoted below?

Indulge me if you would.

Quote:
But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders

- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –

borrowers will be (are being) ultra-vetted for their ability to repay.


The new standard is more stringent on the recognition and reporting of bad debts...right now banks are holding on and still reporting lots of loans that are not serviced regularly as potential interest earners..not with the new standard, such will go to the write off territory. It will hit P/Ls badly.
Caveat: I explained the 'common man -g gist of it' that came away from the winded technical version from an expert. I could be off the mark, I am sure a wazuan expert will climb down from the mists of a hangover and do a better job Laughing out loudly
Flo-ology
#2323 Posted : Sunday, August 27, 2017 3:48:47 PM
Rank: Member


Joined: 12/17/2016
Posts: 200
aemathenge wrote:
On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard.

It caught my attention due to the title he opted to give it:

WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASS

Source LINK:

Personally, I believe a more fitting title would have been:

Why Kenians Are Not Shopping For Cars In New Car Showrooms

He did, however, raise a few issues regarding the interest rate cap.

Could someone help me understand what he means by the assertion quoted below?

Indulge me if you would.

Quote:
But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders

- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –

borrowers will be (are being) ultra-vetted for their ability to repay.


Excuse my ignorance; aren't these vehicles a collateral and this loan therefore qualifies as secured loan?
Reflection Eternal
winmak
#2324 Posted : Sunday, August 27, 2017 7:36:29 PM
Rank: Member


Joined: 12/1/2007
Posts: 233
Location: Nakuru
Flo-ology wrote:
aemathenge wrote:
On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard.

It caught my attention due to the title he opted to give it:

WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASS

Source LINK:

Personally, I believe a more fitting title would have been:

Why Kenians Are Not Shopping For Cars In New Car Showrooms

He did, however, raise a few issues regarding the interest rate cap.

Could someone help me understand what he means by the assertion quoted below?

Indulge me if you would.

Quote:
But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders

- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –

borrowers will be (are being) ultra-vetted for their ability to repay.


Excuse my ignorance; aren't these vehicles a collateral and this loan therefore qualifies as secured loan?


Not all the loans have the cars as collateral. Sometimes the car you are buying is in Japan by the time you are applying for the loan.
For investors as a whole, returns decrease as motion increases ~ WB
maka
#2325 Posted : Sunday, August 27, 2017 7:55:19 PM
Rank: Elder


Joined: 4/22/2010
Posts: 10,103
Location: Nairobi
winmak wrote:
Flo-ology wrote:
aemathenge wrote:
On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard.

It caught my attention due to the title he opted to give it:

WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASS

Source LINK:

Personally, I believe a more fitting title would have been:

Why Kenians Are Not Shopping For Cars In New Car Showrooms

He did, however, raise a few issues regarding the interest rate cap.

Could someone help me understand what he means by the assertion quoted below?

Indulge me if you would.

Quote:
But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders

- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –

borrowers will be (are being) ultra-vetted for their ability to repay.


Excuse my ignorance; aren't these vehicles a collateral and this loan therefore qualifies as secured loan?


Not all the loans have the cars as collateral. Sometimes the car you are buying is in Japan by the time you are applying for the loan.


Most of them have the cars as collateral...
possunt quia posse videntur
Flo-ology
#2326 Posted : Sunday, August 27, 2017 8:54:24 PM
Rank: Member


Joined: 12/17/2016
Posts: 200
maka wrote:
winmak wrote:
Flo-ology wrote:
aemathenge wrote:
On 27th August 2017, Dominic Omondi published a long, mostly incoherent, and error infested article in the Sub Standard.

It caught my attention due to the title he opted to give it:

WHAT INVESTORS DON'T UNDERSTAND ABOUT KENYA'S MIDDLE CLASS

Source LINK:

Personally, I believe a more fitting title would have been:

Why Kenians Are Not Shopping For Cars In New Car Showrooms

He did, however, raise a few issues regarding the interest rate cap.

Could someone help me understand what he means by the assertion quoted below?

Indulge me if you would.

Quote:
But financial analysts such as (Corporate Finance Manager at ABC Capital Johnson) Nderi insist that with heightened regulations against lenders

- the latest being a new financial reporting standard that requires lenders to provision for loans based on predicted losses –

borrowers will be (are being) ultra-vetted for their ability to repay.


Excuse my ignorance; aren't these vehicles a collateral and this loan therefore qualifies as secured loan?


Not all the loans have the cars as collateral. Sometimes the car you are buying is in Japan by the time you are applying for the loan.


Most of them have the cars as collateral...

Exactly my point. This article claiming that car sale is low because bank has refused to finance purchases/loans is misplaced. My bank keeps on sending emails on car asset finance. It is now a norm for individuals and business to blame everything on rate-cap.

Reflection Eternal
obiero
#2327 Posted : Tuesday, August 29, 2017 6:50:22 AM
Rank: Elder


Joined: 6/23/2009
Posts: 7,106
Location: nairobi
More distress for the small and now even the medium banks http://www.businessdaily...74558-ivexjbz/index.html
one thing that's certain is that there's uncertainty at the NSE and stocks hate uncertainty
Ericsson
#2328 Posted : Tuesday, August 29, 2017 9:13:29 AM
Rank: Elder


Joined: 12/4/2009
Posts: 3,587
Location: NAIROBI
In 2016, mortgage loan accounts decreased by 1.5 percent from 24,458 to 24,085 after commercial banks tightened credit standards while the average mortgage size increased by 9% from KShs. 8.3 million in 2015 to KShs. 9.1 million in 2016 as a result of increasing property prices.
omhangla
#2329 Posted : Wednesday, August 30, 2017 1:17:08 PM
Rank: Member


Joined: 7/8/2013
Posts: 125
SCB sets aside 10b for unsecured lending. anyone applied for this?
winmak
#2330 Posted : Wednesday, August 30, 2017 2:40:56 PM
Rank: Member


Joined: 12/1/2007
Posts: 233
Location: Nakuru
omhangla wrote:
SCB sets aside 10b for unsecured lending. anyone applied for this?


Positioning for Members fallout now that JM is pulling the plug on salary loans
For investors as a whole, returns decrease as motion increases ~ WB
Ericsson
#2331 Posted : Thursday, September 14, 2017 9:24:50 AM
Rank: Elder


Joined: 12/4/2009
Posts: 3,587
Location: NAIROBI
MadDoc
#2332 Posted : Thursday, September 14, 2017 11:09:11 AM
Rank: Member


Joined: 10/26/2015
Posts: 149
winmak wrote:
omhangla wrote:
SCB sets aside 10b for unsecured lending. anyone applied for this?


Positioning for Members fallout now that JM is pulling the plug on salary loans



Laughing out loudly I guess we'll be seeing more loans to TSC employees at SCB
Ngalaka
#2333 Posted : Tuesday, September 19, 2017 4:33:22 PM
Rank: Veteran


Joined: 10/29/2008
Posts: 1,304
CBK Governor finally decides - off the window it has to go
Quote:

“What needs to change is the discipline among lending institutions. They cannot go ahead setting interest rates the way they were doing before. And it is our job to deal with them in the context of that market discipline,” he said. Dr Njoroge said preliminary findings of a joint study with the Treasury on the impact of the rates capping on growth of credit had confirmed a negative impact.



“I think it is clear to us that this (rate cap) has been problematic in many ways. What I cannot tell you is the path going forward (and) how this will happen,” Dr Njoroge said.



“All I can tell you is that it is in our interest as a country. It is in our interest as a central bank to work to reverse these measures and go back to a regime where interest rates are freely determined, but in a disciplined environment, Dr Njoroge said.
Isuni yilu yi maa me muyo - ni Mbisuu
muandiwambeu
#2334 Posted : Thursday, September 21, 2017 9:39:12 AM
Rank: Member


Joined: 8/28/2015
Posts: 740
Ngalaka wrote:
CBK Governor finally decides - off the window it has to go
Quote:

“What needs to change is the discipline among lending institutions. They cannot go ahead setting interest rates the way they were doing before. And it is our job to deal with them in the context of that market discipline,” he said. Dr Njoroge said preliminary findings of a joint study with the Treasury on the impact of the rates capping on growth of credit had confirmed a negative impact.



“I think it is clear to us that this (rate cap) has been problematic in many ways. What I cannot tell you is the path going forward (and) how this will happen,” Dr Njoroge said.



“All I can tell you is that it is in our interest as a country. It is in our interest as a central bank to work to reverse these measures and go back to a regime where interest rates are freely determined, but in a disciplined environment, Dr Njoroge said.

Watu wa mortgage, were is the choirmaster? Vindu ni vichenjaga Sad can't you start your chorus too!!!!
,Behold, a sower went forth to sow;....
Gatheuzi
#2335 Posted : Thursday, October 05, 2017 7:15:44 AM
Rank: Veteran


Joined: 8/16/2009
Posts: 935
Banks get more agressive on reposessions. However getting buyers is an equally tough task for the auctioneers.

link
Time is money, so money is time. Money saved is time gained in reverse!
maka
#2336 Posted : Thursday, October 05, 2017 8:06:42 AM
Rank: Elder


Joined: 4/22/2010
Posts: 10,103
Location: Nairobi
Gatheuzi wrote:
Banks get more agressive on reposessions. However getting buyers is an equally tough task for the auctioneers.

link


Things are not rosy at all...
possunt quia posse videntur
obiero
#2337 Posted : Thursday, October 05, 2017 8:31:49 AM
Rank: Elder


Joined: 6/23/2009
Posts: 7,106
Location: nairobi
maka wrote:
Gatheuzi wrote:
Banks get more agressive on reposessions. However getting buyers is an equally tough task for the auctioneers.

link


Things are not rosy at all...

Things fall apart
one thing that's certain is that there's uncertainty at the NSE and stocks hate uncertainty
wukan
#2338 Posted : Thursday, October 05, 2017 10:47:34 AM
Rank: Member


Joined: 11/13/2015
Posts: 401
Gatheuzi wrote:
Banks get more agressive on reposessions. However getting buyers is an equally tough task for the auctioneers.

link


Private sector recession public sector consumption... waiting for the shit to hit the fansmile smile

Wish our local media wrote such stories instead of the political crap
obiero
#2339 Posted : Thursday, October 05, 2017 9:46:28 PM
Rank: Elder


Joined: 6/23/2009
Posts: 7,106
Location: nairobi
wukan wrote:
Gatheuzi wrote:
Banks get more agressive on reposessions. However getting buyers is an equally tough task for the auctioneers.

link


Private sector recession public sector consumption... waiting for the shit to hit the fansmile smile

Wish our local media wrote such stories instead of the political crap

All Kenyan banks to report continued reduction in profit going into full year. Q3 already reveals a terrible situation, led by HFCK with a 65% PBT tumble YoY, NBK 58% slide, and SCBK 30% down..
one thing that's certain is that there's uncertainty at the NSE and stocks hate uncertainty
heri
#2340 Posted : Saturday, October 07, 2017 10:13:02 AM
Rank: Member


Joined: 9/14/2011
Posts: 561
Location: nairobi
obiero wrote:
wukan wrote:
Gatheuzi wrote:
Banks get more agressive on reposessions. However getting buyers is an equally tough task for the auctioneers.

link


Private sector recession public sector consumption... waiting for the shit to hit the fansmile smile

Wish our local media wrote such stories instead of the political crap

All Kenyan banks to report continued reduction in profit going into full year. Q3 already reveals a terrible situation, led by HFCK with a 65% PBT tumble YoY, NBK 58% slide, and SCBK 30% down..


if the rates cap had not been put in place, and the economy is evidently doing badly, i wonder if the banks would be worse off since they would have continued lending at high rates and people would still be borrowing more to keep afloat but that can only go on for so long.

If the banks are doing this badly and yet they are earning alot from lending to the government at high rates, what if the lending to the government becomes not too attractive

I wonder how HF will recover seeing that real estate is badly hit
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