First Community Bank in Trouble?

[sema]

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This is Grand Mullah's bank along with other Somali owners.  People are not being allowed to withdraw more than Ksh. 10,000 and some are not able to withdraw money at all.  Speculation that money was withdrawn and shifted to Dubai real estate and that the bank is now on the verge of collapse.

[RV Heavy Hitter!]

[sema]

People are posting videos on twitter while theyre at the bank complaining. Not sure if this statement is true.

[audacityofhope]

There have been fewer bank collapses under the current CBK Governor's watch, but historically Banks in Zamunda are not known to survive a run on it by customers.

Ahmednassir has commented on everything including dollar billionaires, but has not commented on First Community Bank.

— Medianalystar (@TrottoirRadio) October 4, 2022

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[audacityofhope]

[Githunguri]

Banks have very little cash at hand..as long as major depositors can withdraw,hype a politically driven media narrative of bank run and cbk plus other banks refuse to lend to the said bank,It immediately collapse.

[patel]

Uhurus people targeting grand mullah. Doing business is no joke no wonders most run to matatu business and slumlordship.

[sema]

The former Chase Bank board chair Zafrullah Khan is the 6th largest shareholder at First Community Bank owning 2.7% of the bank. Khan is facing criminal charges for allegedly stealing more than Sh1.6bn from Chase Bank through bogus loan and bonus schemes.

You just have to avoid African owned banks at all costs.

[audacityofhope]

There have been fewer bank collapses under the current CBK Governor's watch, but historically Banks in Zamunda are not known to survive a run on it by customers.

PEOPLE DAILY reporting that President Ruto's insiders want the CBK Governor out. And if he declines to resign, they'll have him face a tribunal on charges of "failure to execute his duties". It's the small price you have to pay for doing your job. But in everything we thank God.

— Gabriel Oguda (@gabrieloguda) October 5, 2022

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[Njuri Ncheke]

Seems somalis have fallen to their own bankrupting them.

[hk]

First community bank started experiencing liquidity problems early last month. I know of a eastleign businessman who wasn't able to complete $1.5m transaction in KSH.  At the root of their problem might be the huge exposure to Eastleign real estate which is clearly overbuilt and priced. The bank is tied to somali eastleign economy, if it goes down, a lot of eastleign businesses would be wiped out. 

[Njuri Ncheke]

First community bank started experiencing liquidity problems early last month. I know of a eastleign businessman who wasn't able to complete $1.5m transaction in KSH.  At the root of their problem might be the huge exposure to Eastleign real estate which is clearly overbuilt and priced. The bank is tied to somali eastleign economy, if it goes down, a lot of eastleign businesses would be wiped out.

Yes this precisely the problem lack of diversification,they need to sell themselves quickly to a bigger bank to avoid a melt down that will make Somalis go broke.

[gout]

Looks opus Dei has been doing well. I had thought the virus would take down several saccos and small banks. Next two years crucial based on Hasla govt borrowing trends.

[gout]

Opus Dei should lower the cash reserve requirement ratio to 2% for next two years. There is need for a law to allow banks in distress to manoeuvre.

First community bank started experiencing liquidity problems early last month. I know of a eastleign businessman who wasn't able to complete $1.5m transaction in KSH.  At the root of their problem might be the huge exposure to Eastleign real estate which is clearly overbuilt and priced. The bank is tied to somali eastleign economy, if it goes down, a lot of eastleign businesses would be wiped out.

Yes this precisely the problem lack of diversification,they need to sell themselves quickly to a bigger bank to avoid a melt down that will make Somalis go broke.

[RV Pundit]

Opus Dei should rescue banks by calming the depositors unless he knows something.

Banks operate on confidence;