Another bank bite the dust.

[RV Pundit]

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http://www.standardmedia.co.ke/business/article/2000197433/chase-bank-placed-under-receivership-for-one-year

[MOON Ki]

http://www.standardmedia.co.ke/business/article/2000197433/chase-bank-placed-under-receivership-for-one-year

Kenyans have invented a new version of robbing the bank because "that's where the money is":

The first set had understated insider loans to staff and directors by about Sh8 billion, necessitating the second set of statements.

[RV Pundit]

Robbery is everywhere. Audit firms and CBK must have been in cahoot for this to happen. I think Dr Patrick Njoroge Opus dei is really sweeping under the carpet. Hopefully out of this mess will emerge few stronger banks.

Kenyans have invented a new version of robbing the bank because "that's where the money is":

[MOON Ki]

Robbery is everywhere. Audit firms and CBK must have been in cahoot for this to happen. I think Dr Patrick Njoroge Opus dei is really sweeping under the carpet. Hopefully out of this mess will emerge few stronger banks.

Audit firms too exist to make money, and in dodgy environments they will "adjust" accordingly.   It is also becoming clear that the last guy who was in charge of CBK was not averse to getting his share of Our Great Country .... there are allegations that even his wife took bites (big and small).   

[gout]

Apart from from our robbery/banditry/fraud cultures, it will be interesting how Kenyan banking sector turns out in next 10-20 years given the mobile money revolution.

I can't imagine the rot in the unregulated saccos where everybody has a stake.

Bad loans can't be hidden for long. As long as the worst that can happen to you is 'resigning' we will surely be in this cycle again in 20 years after Njoroge is gone. Why did he turn around so quick, in 24 hours. The CBK corrupt system is shielding him from reality?

[Globalcitizen12]

Giving risky loans and lower capital requirements. The business climate in Kenya in the last 5 years has been shaky. Most personal loans have been used to speculate on land and real estate or just consumed

[gout]

My take is that land will continue to appreciate, it is the best store of value here for now.

[Georgesoros]

My take is that land will continue to appreciate, it is the best store of value here for now.

As I have always said, if its too expensive capital will fly away to cheaper places.  If I pay to put up a building i have to ensure that renters can afford it, otherwise its a loss. Policies to curb speculation are 10yrs behind.

[Empedocles]

My take is that land will continue to appreciate, it is the best store of value here for now.

Careful.

Among the main reasons, real estate speculation is what brought these banks, plus more on the way, to their knees (the clock has been ticking since early 2014, see Banks feel the heat of new CBK order on bad loans).

An extract:

Where do people think the insider borrowing from the banks was going? Like the Americans in 2008 with their cheap credit, very cheap corruption money and insider bank loans drove the real estate market sky high. Everybody, including bank directors, joined the bandwagon of erroneously thinking that land will always appreciate (we have all collectively forgotten the real estate crash of the 80s and the land buying saccos).

[Georgesoros]

My take is that land will continue to appreciate, it is the best store of value here for now.

Careful.

One way to make land cheap is mandate every county to create cemeteries and pass a law that all the dead should be buried there.

Among the main reasons, real estate speculation is what brought these banks, plus more on the way, to their knees (the clock has been ticking since early 2014, see Banks feel the heat of new CBK order on bad loans).

An extract:

Where do people think the insider borrowing from the banks was going? Like the Americans in 2008 with their cheap credit, very cheap corruption money and insider bank loans drove the real estate market sky high. Everybody, including bank directors, joined the bandwagon of erroneously thinking that land will always appreciate (we have all collectively forgotten the real estate crash of the 80s and the land buying saccos).

[Globalcitizen12]

Equity was rescued by several funds I wonder if family bank is next. How is kcb folly into ea and Sudan going?

[RV Pundit]

One director loaned himself 9B. Lots of insider lending at low rate. CBK has to step up it's supervision.

[Globalcitizen12]

one of the netters said that Chases has a lot of corporate clients so GOK will step in to save it in order to rescue these clients. In 2014 around July I was talking to someone and they mentioned that their company was about to go bankrupt because they had supplied 100 million of goods to various companies like RVR but these companies were not in a position to pay for goods due to cash flow issues. The company had gone for 6 months without paying its suppliers and commission to marketing employee. the company was only surviving because the owner had other subsidiaries in Southern Africa that were giving Kenyan company money to operate. So multiply this effect to employees who for six months had to use up all their credit and savings to meet their bills. I know for sure that in the last 3 months many Kenyans are having issues making ends meet and I am talking to middle class Kenyans that I deal with regularly.

[MOON Ki]

One director loaned himself 9B. Lots of insider lending at low rate. CBK has to step up it's supervision.

It looks worse than "low rates".   There appear to be quite a few unsecured loans---some people with history with the bank(s) were apparently given loans even before the ink dried on their account-opening forms----which is basically just saying it's free money.   And when it's the bankers handing to themselves, it's simple theft of clients' money.

[RV Pundit]

Yeah that is more like it. CBK as the supervisor and regulator has completely failed.Njoroge need to do a clean up of the CBK. Before he sweeps the commercial banks, he need to start at CBK.

It looks worse than "low rates".   There appear to be quite a few unsecured loans---some people with history with the bank(s) were apparently given loans even before the ink dried on their account-opening forms----which is basically just saying it's free money.   And when it's the bankers handing to themselves, it's simple theft of clients' money.

[RV Pundit]

Boinet orders their arrest. Time these white collar criminals were dealt with.
http://www.nation.co.ke/news/Boinnet-orders-arrest-of-top-NBK-Chase-Bank-managers/-/1056/3151206/-/l6688c/-/index.html

[Globalcitizen12]

uchumi managers and directors should be arrested next. The key is did CID and others do their investigations well enough to sustain a conviction? Do you remember Muthama and Eurobank he went free and killed one of the directors who they though would rat him out

[Empedocles]

Boinet orders their arrest. Time these white collar criminals were dealt with.
http://www.nation.co.ke/news/Boinnet-orders-arrest-of-top-NBK-Chase-Bank-managers/-/1056/3151206/-/l6688c/-/index.html

The managers were given the option of "presenting themselves at the Directorate of Criminal Investigations headquarters by 3.30 p.m Friday."

The social media?

Anyone else go through their most recent financials? Chase Bank Financials 2015 Quarter 3 PDF.

[Georgesoros]

What if political corrupt criminals were routed like they are doing now???

[Georgesoros]

Ramifications of Chase will reach far and wide...