Libya operated differently compared to all countries around the world… both muslim or non muslim
They didnt have a central bank system (ka hii yetu) they had a state owned bank
Central banks are not owned by the state but by huge banks owned by akina Rothschild
This is a lot of contortion and a bit of conspiracy theory. All Central Banks except the Fed (US) are either publicly owned (Japan as en example) or held in trust for the public (CBK is held in trust by PS wa Finance). Bottom line : All central banks are government controlled.
Libya has had a Central Bank since 1956. It’s actually pretty much modeled around the traditional central banks (governor na all that).
The Rothschild story is a conspiracy theory with English origin. They have vast interests in financial services but they don’t own any central banks. Hiyo ni conspiracy unless you have credible proof na si zile search results from Google and sijui what conspiracy sites.
Tala, Okash etc will just keep on
:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D
Hii mambo ya kusoma tugazeti twa kumi… ama wacha tu
Nothing in that shit hole’s legit. Someone just said the only legit bank there is Standard Chartered.
Kawani since when is Kuria the only sober mind in a legit gava?
The govt. there is Gansta, case closed!
Zile unaletewa ukiwa mat ya ocha
The approach the Government should have taken is a simple one.
1.They should have not removed the minimum rate on savings.
2.The interest rate cap should be scrapped BUT Government owned banks from National Bank,Consolidated Bank,Development Bank of Kenya,Post Bank etc should offer lower interest rates(after the GOK has bailed them out for the final time).
If say they are offering high savings rates(like how Post Bank had an account that was offering 10% per annum tax free) and low interest rates like 12%.You can bet customers and SMEs would shift very quickly to those banks and the other banks would be forced to lower their rates.(Before you ask if they can make profit from the 2% difference between savings and loans.We know the savings are invested in bonds yeilding around 12 to 13%. Not from loans.)
Brazil did this and it worked quite well.
That should be the role of Government owned banks.
its a fact that Gadafis Libya had 0% interest and that was possible because Libya’s central Bank was constituted on islamic principles. with that in mind for any islamic bank to operate interest free loans the Central Bank has to be under the islamic principles, therefore there is no islamic Banking in kenya because the foundation of the Central Bank of Kenya is not on islamic principles cause this is a secular and not an islamic state thus very difficult to operate a bank purely on islamic principles. in otherwords its just sugar coating but what “islamic banks” charge in kenya is primarily INTEREST
I don’t think Government should be in the banking business. Loan interest rates are actually based on risk and state of the economy- including inflation. No way it can be 2% difference in Kenya.
Do your research. The bank never loses!
For the said period, it does. Say for a month or so. Eventually though (at the completion of repayment) it doesn’t because such losses are covered in the profit sharing ratio.
Leaving banking to the private sector alonehas given us two global crises,the Asian Financial Crisis at the end of the 90s a s the Great Recession.
As suchGovernment should ABSOLUTELY be in banking.In fact they should reaquire HFCK.The banking sector has shown time and again that its aim is simply profit.Not the customer and their needs.
It would stop some of the cartel like behavior they have.
Risk plays an element but Like I said,banks in Kenya already lowered their risk for savings accounts by to Government Bonds even before the rate cap.As such they do not use their own reserves ,customer deposits go directly to bonds and they take the difference between the two.
As such the money they are lending would mostly not come from customer deposits from savings but likely from other sources like current accounts.
Again Brazil has done this several times though the last time it backfired spectacularly.
Interest rates did go down but Brazillians went on an unprecedented borrowing spree that led to inflation and ironically higher interest rates.And then banks shifted to credit cards which are like our mobile loans,they have different lending rules.That would not be the case in Kenya as the ones doing the borrowing are businesses, not people and banks cannot shift people to credit cards(they are trying to shift people to mobile loans but given the low limits most people have, many banks prefer higher levels.Credit cards have this but Kenyans are allergic to them. I like them though).
You are covering alot. Two global crisis out of 150+ years. I would say thats not bad. Kenyan government should be setting policy, not doing private business. Technically I dont see much difference between a mobile loan and a credit card.
Do Pleasant Things Yourself, Unpleasant Things Through Others
In high places one can only work by means of rewards and punishment, so grant the first yourself, inflict the other through others.
Have some one against whom the weapons of discontent, hatred, and slander may be directed. For the rage of the mob is like that of a dog: missing the cause of its pain it turns to bite the whip itself, and though this is not the real culprit, it has to pay the penalty.