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87 Pages<12345>»
Law Capping interest rates
obiero
#41 Posted : Thursday, July 28, 2016 10:04:55 PM
Rank: Elder


Joined: 6/23/2009
Posts: 4,971
Location: nairobi
enyands wrote:
obiero wrote:
enyands wrote:
researchfirst wrote:
The Financial Times' East Africa correspondent tweeted today that Manoah Esipisu (the official State House spokesman) told the paper, regarding the bill: "We believe in a free market and free market dynamics should generally apply." Seems pretty clear that the President won't sign.


There you go. You can't shoot your own foot .

Manaoh will not guide us on this one.. Kenyans are tired



Tired of mpigs ama banks clarify

Both really..
enyands
#42 Posted : Thursday, July 28, 2016 10:12:49 PM
Rank: Elder


Joined: 12/25/2014
Posts: 2,206
Location: kenya
obiero wrote:
enyands wrote:
obiero wrote:
enyands wrote:
researchfirst wrote:
The Financial Times' East Africa correspondent tweeted today that Manoah Esipisu (the official State House spokesman) told the paper, regarding the bill: "We believe in a free market and free market dynamics should generally apply." Seems pretty clear that the President won't sign.


There you go. You can't shoot your own foot .

Manaoh will not guide us on this one.. Kenyans are tired



Tired of mpigs ama banks clarify

Both really..


Onyesha msimamo
Obi 1 Kanobi
#43 Posted : Thursday, July 28, 2016 10:41:07 PM
Rank: Elder


Joined: 7/23/2008
Posts: 2,617
MaichBlack wrote:
MaichBlack wrote:
President Uhuru is not going to sign that bill!!!

Any finance/economics guy will tell it would be a tragedy to individual loan seekers and SMEs.
Interest rates among other things depend on the risk profile of the client. If the rate is capped, the banks would focus on the least risky customers first - the government and blue chip companies. SMEs and individuals would follow if there is money left.

And why would I want to lend to 10,000 entities Kshs. 100,000/= each while there is a single entity (with a better risk profile) that is willing to take the entire billion???


Link: Exactly as I had said earlier. This is Finance/Economics 101. Pure common sense!!!


@maichblack. I dont see the Econ 101 you are referring to on this link. just a plea from an industry lobbyist. have you read the comments to the nonsense written by Habil Olaka. Basically what I have been saying here all along but from a wiser public grouping.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
Coolbull
#44 Posted : Thursday, July 28, 2016 11:04:51 PM
Rank: Member


Joined: 10/23/2007
Posts: 451
Aki bankers are liars. There is nothing like lending to a high risk borrower. Which bank in Kenya ever gives money to a borrower while doubting their ability to pay. In fact charging high interest is increasing chances of defaulting.

Unless we are talking about the vulture-nature of lenders who lend to persons who cant re-pay so that they can auction their property. That is now over.

1. Bankers are crying wolf like former TELPOSTA employees at the introduction of mobile phones.

2.The same happened with Michuki rules. So called analysts warned of increase in fares. That did not really happen. Bado kuna trip za 10bob.

3. This was the same cry regarding MPESA and Mshwari.

I wish somebody can do something about high land prices...despite being an agent. Even some wives (over)charge for landing....conditions wazimu wazimu.

Fact: Kenyans are over-charged for everything, including prayers in some churches.
Pesa Nane
#45 Posted : Thursday, July 28, 2016 11:19:27 PM
Rank: Elder


Joined: 5/25/2012
Posts: 2,719
Location: 08c
Pesa Nane plans to be shilingi when he grows up.
MaichBlack
#46 Posted : Friday, July 29, 2016 1:38:23 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,087
Obi 1 Kanobi wrote:
MaichBlack wrote:
MaichBlack wrote:
President Uhuru is not going to sign that bill!!!

Any finance/economics guy will tell it would be a tragedy to individual loan seekers and SMEs.
Interest rates among other things depend on the risk profile of the client. If the rate is capped, the banks would focus on the least risky customers first - the government and blue chip companies. SMEs and individuals would follow if there is money left.

And why would I want to lend to 10,000 entities Kshs. 100,000/= each while there is a single entity (with a better risk profile) that is willing to take the entire billion???


Link: Exactly as I had said earlier. This is Finance/Economics 101. Pure common sense!!!


@maichblack. I dont see the Econ 101 you are referring to on this link. just a plea from an industry lobbyist. have you read the comments to the nonsense written by Habil Olaka. Basically what I have been saying here all along but from a wiser public grouping.

Quote:
Individuals, small and medium sized enterprises (SMEs) who are presumed to have a higher risk of defaulting will be locked out from accessing credit if the Bill becomes law, the Kenya Bankers Association (KBA) said Thursday.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
MaichBlack
#47 Posted : Friday, July 29, 2016 1:46:19 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,087
Pesa Nane wrote:

There you go!!!

But apparently as far as some are concerned, there are no consequences and The Central Bank is just imagining stuff like the rest of us!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
MaichBlack
#48 Posted : Friday, July 29, 2016 2:20:07 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,087
enyands wrote:
researchfirst wrote:
The Financial Times' East Africa correspondent tweeted today that Manoah Esipisu (the official State House spokesman) told the paper, regarding the bill: "We believe in a free market and free market dynamics should generally apply." Seems pretty clear that the President won't sign.


There you go. You can't shoot your own foot .let them come out of parliament and we dance the same koffi Olomide music ,hakuna mapendeleo

Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
newfarer
#49 Posted : Friday, July 29, 2016 6:21:52 AM
Rank: Elder


Joined: 3/19/2010
Posts: 2,581
Location: Uganda
2.20am MaichBlack relax, this issue is giving you sleepless nights, even going to monologue mode, what's your interest?
punda amecheka
Mainat
#50 Posted : Friday, July 29, 2016 6:34:17 AM
Rank: Veteran


Joined: 11/21/2006
Posts: 1,575
Ok. So you think the president will cut his profits because some mucheneguy with nothing better to do has come up with some fancy law?
Sehemu ndio nyumba
newfarer
#51 Posted : Friday, July 29, 2016 7:09:18 AM
Rank: Elder


Joined: 3/19/2010
Posts: 2,581
Location: Uganda
Fuel prices are regulated. We have seen some stability in the prices no fuel rationing has occurred. I think it's are good bill as a bank customer. There are Saccos and MFIs to compete with banks if banks sidelines small borrowers.
punda amecheka
enyands
#52 Posted : Friday, July 29, 2016 8:17:24 AM
Rank: Elder


Joined: 12/25/2014
Posts: 2,206
Location: kenya
Mainat wrote:
Ok. So you think the president will cut his profits because some mucheneguy with nothing better to do has come up with some fancy law?

He will never ever cut his own profit. Kenya is a capitalist state and in capital state the economy decides it's equilibrium. You can't force an economic equilibrium by set laws. Works well in communist state like Ethiopia .so hii kitu hakuna Mahali inaenda
penkon
#53 Posted : Friday, July 29, 2016 8:54:26 AM
Rank: New-farer


Joined: 3/12/2014
Posts: 59
enyands wrote:
Mainat wrote:
Ok. So you think the president will cut his profits because some mucheneguy with nothing better to do has come up with some fancy law?

He will never ever cut his own profit. Kenya is a capitalist state and in capital state the economy decides it's equilibrium. You can't force an economic equilibrium by set laws. Works well in communist state like Ethiopia .so hii kitu hakuna Mahali inaenda

let the president ascend it to law,micro-fiance institutions will take care of micros
Swenani
#54 Posted : Friday, July 29, 2016 9:14:11 AM
Rank: User


Joined: 8/15/2013
Posts: 10,857
Location: Vacuum
This is not about uhunye protecting his interests in CBA but it's common sense......It is a bad idea to cap interest rates-they are beter ways to reduce the rates if the govt is keen to.
"If you're tired of arguing with strangers on internet, try talking to one of them in real life"-Barack Obama 10th January 2017
Ericsson
#55 Posted : Friday, July 29, 2016 9:28:43 AM
Rank: Elder


Joined: 12/4/2009
Posts: 2,573
Location: NAIROBI
@penkon
And where will micro-finance institutions get their money from
mlennyma
#56 Posted : Friday, July 29, 2016 9:31:49 AM
Rank: Elder


Joined: 7/21/2010
Posts: 5,306
Location: nairobi
Swenani wrote:
This is not about uhunye protecting his interests in CBA but it's common sense......It is a bad idea to cap interest rates-they are beter ways to reduce the rates if the govt is keen to.

freedom,freedom,freedom as a shareholder i want to see my bank with the independence in lending so that when it goes under they don't give excuses ,this is a very bad and dangerous law when combined with the current NPL's within the banking sector it can wipeout bank profits by a quarter or even half and cause unrest and public panic
"Don't let the fear of losing be greater than the excitement of winning."
penkon
#57 Posted : Friday, July 29, 2016 9:36:41 AM
Rank: New-farer


Joined: 3/12/2014
Posts: 59
Ericsson wrote:
@penkon
And where will micro-finance institutions get their money from

mwanainchi na vibanda
kaka2za
#58 Posted : Friday, July 29, 2016 9:44:47 AM
Rank: Elder


Joined: 10/3/2008
Posts: 2,262
Location: Gwitu
Adverse selection. Wanjiku can say goodbye to access to credit.
mlennyma
#59 Posted : Friday, July 29, 2016 9:45:51 AM
Rank: Elder


Joined: 7/21/2010
Posts: 5,306
Location: nairobi
newfarer wrote:
Fuel prices are regulated. We have seen some stability in the prices no fuel rationing has occurred. I think it's are good bill as a bank customer. There are Saccos and MFIs to compete with banks if banks sidelines small borrowers.

money can never be compared to just any other consumable,
"Don't let the fear of losing be greater than the excitement of winning."
Obi 1 Kanobi
#60 Posted : Friday, July 29, 2016 9:48:38 AM
Rank: Elder


Joined: 7/23/2008
Posts: 2,617
Swenani wrote:
This is not about uhunye protecting his interests in CBA but it's common sense......It is a bad idea to cap interest rates-they are beter ways to reduce the rates if the govt is keen to.

Which are this other methods everyone keeps talking about and why has Treasury/CBK not applied them to the sector.

It is this failure by the CBK/Treasury to tame rates that has now forced the legislature to come up with this law

By the way interest rates caps of one form or another do exist in South Africa, India, Bangladesh.

In the US, France and even UK, caps do exist to check Usurious and predatory lenders. Our entire financial system is predatory and need to be checked through such caps.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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