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Episode 72: The Impact of Interest Rate Capping

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Contenuto fornito da Brenda Wambui. Tutti i contenuti dei podcast, inclusi episodi, grafica e descrizioni dei podcast, vengono caricati e forniti direttamente da Brenda Wambui o dal partner della piattaforma podcast. Se ritieni che qualcuno stia utilizzando la tua opera protetta da copyright senza la tua autorizzazione, puoi seguire la procedura descritta qui https://it.player.fm/legal.

In September 2016, Kenya passed the Banking Amendment Act, creating interest rate controls where there were none before. It sets the maximum lending rate at no more than 4% above the Central Bank base rate; and the minimum interest rate granted on a deposit held in interest earning accounts with commercial banks to at least 70% of the same rate.

There has been an ongoing debate in the two years since on whether we should remove these controls because of their perverse effect on our economy. Today, we're joined by Elizabeth Wangechi, the Head of Research at Genghis Capital, to discuss the impact of these controls. Press play!

Resources

The Banking (Amendment) Act 2016

The Impact of Interest Rate Capping on the Kenyan Economy - Full

The Impact of Interest Rate Capping on the Kenyan Economy - Summary

CBK regrets interest rates cap due to negative effects on economy

MPs uphold rate cap law, scrap interest on savings

CBK spells out loan rules ahead of interest rate cap review

Image Credit: FT.com

  continue reading

115 episodi

Artwork
iconCondividi
 
Manage episode 218803680 series 1247257
Contenuto fornito da Brenda Wambui. Tutti i contenuti dei podcast, inclusi episodi, grafica e descrizioni dei podcast, vengono caricati e forniti direttamente da Brenda Wambui o dal partner della piattaforma podcast. Se ritieni che qualcuno stia utilizzando la tua opera protetta da copyright senza la tua autorizzazione, puoi seguire la procedura descritta qui https://it.player.fm/legal.

In September 2016, Kenya passed the Banking Amendment Act, creating interest rate controls where there were none before. It sets the maximum lending rate at no more than 4% above the Central Bank base rate; and the minimum interest rate granted on a deposit held in interest earning accounts with commercial banks to at least 70% of the same rate.

There has been an ongoing debate in the two years since on whether we should remove these controls because of their perverse effect on our economy. Today, we're joined by Elizabeth Wangechi, the Head of Research at Genghis Capital, to discuss the impact of these controls. Press play!

Resources

The Banking (Amendment) Act 2016

The Impact of Interest Rate Capping on the Kenyan Economy - Full

The Impact of Interest Rate Capping on the Kenyan Economy - Summary

CBK regrets interest rates cap due to negative effects on economy

MPs uphold rate cap law, scrap interest on savings

CBK spells out loan rules ahead of interest rate cap review

Image Credit: FT.com

  continue reading

115 episodi

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