Family Bank posts Sh743m after-tax loss in third quarter

Elections has made an insignificant contribution towards family bank loss.

The real cause is the near bank run that happened in October 2016. Depositors withdrew nearly 20Billion in just 5 days. In fact their liquidity ratio went below the minimum 20% central bank requirement. Reduction in deposits= Slowdown of lending. Compared to 2016, the bank has seen a reduction of its loan book by 12 billion which has resulted in interest income dipping by 50%.

Another element is the interest rate cap. They were getting deposits at almost 0% and lending at 18%. Now they get deposits at 7% and lend at 14%. The margin has been reduced by more than half.

Hata ile chai ya saa kumi waliondoa haikusaidia?

:D:D:D:D:D kuwa mpole naniiiiiiiiiiiii