Family Bank~ Voluntary retirement memo circulated to staff.
Sidian Bank~ The Centum owned bank plans to lay off 108 employees.
Eco bank ~ The giant Pan African bank has plans to close 8 branches in Kenya by April 2018
Survey Question:
For those of you with loans, how easy has it been to get top ups?
For those of you without loans, has it been easy to get a loan facility?
Share your experiences!
Following.
my two banks have been bombarding me with smses offering loans…
Keenly following for the future…
Gani hizo tuhamie huko?
Following for educational purposes…
co-op and kcb
Sawa, nko Coop tayari
bbk denied me a top up. very silly. nasikia they scrapped the unsecured loans and only offering scheme loans
BBK na Stranded Chattels tuliachana in the year of our Lord 1999…walisema hawataki peasants wanachafua their terrazo floors with matope ya kahawani…
DTB pia wako na very selected lending. I’ll confirm Stanchart position when I visit them Saturday.
Tier 2 & 3 banks sioni wakitoboa.
Loan ni haram
[ATTACH=full]65417[/ATTACH]
Wizi mdogo mdogo umeanza, I have never even put a shilling in that account.
No news here.
DTB have always been like that. Based even on financial statements, they have the lowest NPLs compared to any bank their size. They are also well diversified in East Africa.
They actually only give secured loans since time in memorial. And I don’t think they even give personal loans
This is news to me. I made an inquiry to one of their managers to find out how the new law has affected their bank. I have never even analysed their NPLs or their loan book. But thanks for the info.
For Tier 2 banks I don’t think I&M, DTB and CFC Stanbic(if it is not Tier 1) will be inflicted any serious injuries.
I&M finances almost all the big infrastructure projects in Westlands and Upper Hill that are being done by Indians. As such, majority of the loans they give out have ALWAYS been heavily subsidized so the present circa 14% is even above what a lot of big clients get. They have trimmed Labour costs since they took the whole online banking to another level hence you will never hear an I&M client going to visit their branch 
As for DTB, Their regional business is doing quite well. Plus also accounting that they are perhaps the same most strict bank in the Tier 1 to Tier 2 when it comes to lending it means that they really have low rates of defaults and can operate within profitable margins. Solid management with the Aga Khan owning close to 40% of this thing.
CFC were able to weather the South Sudan storm and even declare profits this year. Also account for the fact that their initial deposit interest rates were at around 7% prior to the interest act. They are even probably a Tier 1 bank.
I think banks that are on the red here are maybe NIC(Ballooning Npls) , family bank etc etc.
Also account for the fact that KCB and Equity especially have found a ‘loophole’ around this act and are making a killing from ‘encouraging’ people to borrow from their sherlock mobile apps.
This is quite alarmist for now. Banks in developed economies give loans at even at 3%-5%and are still surving. Most large banks in the US for a example, revenue generated from loans in usually just about 40% of the total. We just have to diversify revenue streams locally.
You can’t compare banks in developed countries and Kenya. No. They operate in different economic environment with different risks.
In developed countries, inflation is less than 1%. Their Central Banks e.g. Bank of Japan are giving negative interest rates. Here in Kenya, inflation is 6% while CBK is giving interest of 8%. You surely do not expect a Kenyan bank to charge 3-5% interest on loans.
Default risk in developed countries is lower than that in Kenya. They have low unemployment rates. They have integrated systems such as social security numbers for tracking its citizens. The same cannot be said about Kenya. Kenyan banks have to put a margin to cover for the risk of default.
One factor that determines the pricing of a loan is the cost of funds. You will note that some of the tier 2 and 3 banks relied heavily on deposits which were cheap then. Right now deposits are expensive and hence the profit margin has been reduced.
The Barclay’s, Stancharts, KCBs, etc get substantial amount of their funds from overseas at rates of 2-4%. Quite a number of tier 2 and 3 banks cannot access these funds.
Finally, you say that the tier 2 and 3 banks should diversify into other revenue streams. Which ones are these?
Following keenly, at this rate my money is (still)better off under my mattress… Good day to you
Mattress yako pia inapeana loans?