Nipate

Forum => Kenya Discussion => Topic started by: KenyanPlato on February 27, 2019, 11:11:59 AM

Title: Interest caps drive informal sector to black market
Post by: KenyanPlato on February 27, 2019, 11:11:59 AM
I have a buddy that is doing shylock loans and is making bank. He got an army of police enforcer and rogue judges. No defaults so far

https://kenyanwallstreet.com/tier-3-banks-bear-the-biggest-brunt-of-the-interest-rates-cap-regime-sib/

Mama mbogas and other informal sector borrowers are his customers

He learnt his business working for microfinance and saccos
Title: Re: Interest caps drive informal sector to black market
Post by: RV Pundit on February 27, 2019, 04:43:41 PM
No difference btw Shylocks and what those little banks were charging.

We don't need 3rd tier banks. 45 banks is a lot. South Africa has like 4-10 banks. Nigeria has 18.

Why do you need that many banks - merge them into 10 banks - BIG ENOUGH to take risks.
Title: Re: Interest caps drive informal sector to black market
Post by: KenyanPlato on February 27, 2019, 05:37:01 PM
Quote from: RV Pundit on February 27, 2019, 04:43:41 PM
No difference btw Shylocks and what those little banks were charging.

We don't need 3rd tier banks. 45 banks is a lot. South Africa has like 4-10 banks. Nigeria has 18.

Why do you need that many banks - merge them into 10 banks - BIG ENOUGH to take risks.

. Number of banks is not the issue they are serving clients in free market economy. You are like moi. You think populism is Good  economic policy