Everyone in town knows that Chase Bank is no longer chasing. Last year, Imperial dissappeared. Then came Dubai.
Rumours about 8 others. Wah! What does all these mean?
Banking Industry!
Low confidence in the short term.
Mass withdrawals, even for the stable ones.
Liquidity may (and I insist May) be strained in the short term.
Banking stocks will take a hit.
Regulator may revise bank deposits upwards.
Forget about UNAITAS getting listed any time soon.
Bye bye to small banks.
Mergers and acquisitions may be in the offing. The vultures are already circling.
KE Macro
This is just a sneeze. But the cough may catch on, then lead to malaria, then God knows what next.
New banks entering the market will find the going very tough. Imagine being a marketer and trying to sell a new bank to people right now. You will be lucky to get anyone to sign up.
I am also thinking that tier 1 banks may take advantage of the situation right now and overcharge their customers because they (the bank) knows customers will be cautious in changing banks.
In my opinion, corporate governance in family/friends owned Kenyan banks is weak. The owners/friends sit on the board and therefore you don’t expect independence of directors.
Last year was a Shemitah year. For those who don’t know, Google it. It’s the 7th time of the 7th year. Loans had to be paid. This financial balance always happens. When was the Credit crunch in the US of A? But this is a great opportunity for those who are in the know.
@wheelz explain to me like a 2 year old. Where’s the connection?
Imperial, Dubai, Chase, NBK… I see a trend. Insider trading, unsecured loans extended to directors/shareholders/friends/relatives/employees. I see lack of corporate ethics.
@Conservative dude No conspiracy here. It’s the Jewish way of doing things. And they control our money system. The link between Dubai, Imperial & Chase Bank is the Ismaili Muslims behind the veil. I can’t mention names, but this was going to happen. It’s just debt control. I can write a proper conspiracy for events but I value my life.
Endelea, tell us the lions leaving the park was the green light for the jews to turn the screws on the ismaili businesses. Please link it to ICC withdrawing charges on Ruto…
small banks had to go but they started with those books arent in order.
another theory i heard among the elites.
if their combined loaning power cannot bankroll things like mining coal in kitui or lappset.
we needed stronger banks