Should Lending Rate Capping Law Be Appealed As “CBA” Banks Argues.
More people will be sent home as banks adjust to increase profitability to the interest capping law. The Chairman of the Kenyan Banks Association, CBA
Lamin Manjang says “So a number of banks have actually closed branches… We have seen an acceleration of investment in digital technology.. Obviously … You know… Which has an impact on head count, on employment, in the industry.”
The best chance to affordable credit would be achieved by allowing market forces to take charge as opposed to put in a selling. Manjang says there is no need for a read cap despite what the government aspired to achieve. “If you look at the trends in-terms of Market lending rate from 2012 to last year (2016), it dropped to about 23 per cent on average to 73 per cent; so directionally Rates where coming down.” added Manjang.
The government has in the past week indicated that it is considering a review of the law given how the private sector has been staved of credit; yet it is the states hope for growth an employment. Technology interruption has also been a cause for retrenchment by a number of banks in the in the past year, while speaking in the money Euro conference kicked off today:
Central Bank governor Patrick Njoroge challenged banks to adopt innovations to survive in the first change in digital environment.
“I don’t have to go to a brick and mortar building, it is not just that sort of things; things will be tailored from my own things, so their tailored for the customers and then the customer will then leverage his or her own sort of aaah.. Let’s say characteristic and get something that is a product, that is best fit for purpose.” Added CBA, governor Patrick Njoroge.
Treasury carbonate secretary Henry Rotich, in a speech read on his behalf loaded Kenya’s inclusion financial efforts but added that there is more room to bridge and existing gap for consumer service access to financial sector players and regulators.
BIG Q; Is Technology Interruption Been A Cause For Retrenchment By Banks?