Indeed. Ali Hussein Principal Hussein & Associates +254 0713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim "Discovery consists in seeing what everyone else has seen and thinking what no one else has thought". ~ Albert Szent-Györgyi Sent from my iPad
On 5 Jan 2017, at 10:02 PM, Emmanuel Khisa <oloo.khisa@googlemail.com> wrote:
Yeah that is true Ali. The banking sector is going through some very challenging times...That said the potential for KITS is huge for small and medium size business but its the regulator's headache to figure out.
On Thu, Jan 5, 2017 at 9:44 PM, Ali Hussein <ali@hussein.me.ke> wrote: Emmanuel
Good points. I'm sure the banking sector has considered this. Fact is this:-
The money circulating in the banking sector is less than 30% of liquidity in Africa. I believe the regulator needs to relook at its mandate and focus on the bigger picture..
Besides, I'm sure the banks have considered that risk and found it worth it..
Ali Hussein Principal Hussein & Associates +254 0713 601113
Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim
"Discovery consists in seeing what everyone else has seen and thinking what no one else has thought". ~ Albert Szent-Györgyi
Sent from my iPad
On 5 Jan 2017, at 6:20 PM, Emmanuel Khisa <oloo.khisa@googlemail.com> wrote:
With some little understanding of the workings here, I suspect that the fear could be threat of liquidity flight from banks due to increased velocity of deposit movement.
The Banking sector is already experiencing tightness of liquidity and I suspect (as I am not privy to CBK's decision and will not pre-empt) the delay is likely based on policy consideration.
I truly hope a way forward is found on the matter even if it means reducing the amount transferable from the current Kes. 1,000,000 to maybe Kes. 300,000 per day per transfer.
You can imagine if funds leave Equity say 1000,000 transfers of 1,000,000 each, you could have a very negative position at the end of business day for the most retail bank. You could also argue that a bank say Equity again may be a net receiver due to its numbers.
Anyway, headache for the regulator.
Rgds
On Wed, Jan 4, 2017 at 10:17 AM, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> wrote: Listers
This is an interesting one. An excerpt from the story in the Business Daily:-
The Business Daily has learned that KBA member banks submitted their product and system proposals to the CBK in July ahead of the planned August launch date, seeking approvals.
Such authorisations, which are ordinarily issued after a maximum of one month, are however yet to be issued, delaying the launch of a product that promises to revolutionise the financial services sector.
Read on:-
http://www.businessdailyafrica.com/Corporate-News/mobile-money-transfer-plat...
As a matter of public interest it would be interesting to know why there's been such a delay in the regulatory approval of such a game changing initiative for the banking sector.
Anyone who has an inkling on the workings at the Central Bank? It seems to me that 7 months waiting for an approval is simply too long...
Ali Hussein Principal Hussein & Associates +254 0713 601113
Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim
"Discovery consists in seeing what everyone else has seen and thinking what no one else has thought". ~ Albert Szent-Györgyi
Sent from my iPad
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-- "Service to Mankind is the greatest form of service"...
Oloo Khisa P.O. Box 24324-00100 Nairobi 0721321086/0731849128 http://ke.linkedin.com/in/olookhisa