Bank of Uganda’s late Annual Supervision Report of 2016 is finally out. Instead of mid-year, it was released in September. It must be reasons for that, since this is in the year two banks lost their balance and one was traded to another. The Crane Bank sale-off and losses have started most people, as also the expensive pens of the Bank. Therefore, with the procurement of pens must be the reason why the months from July to September to see the Annual report. The 2016 spreadsheet isn’t a fun read, it is dire and says something about the financial institutions, as well as the economy in general.
This report are telling stories of bad performing loans and the quality of them. When looking into that, you know that this is banking practice that supposed to be profitable. To loan money away that people save in the bank and gain interests. So, when the numbers are this crunching. When the state of affairs are so dire. When Government Securities and shortfall is what they are. Then you know there are failing prospects. As this the year after campaigns and elections. It is usually painful after the heavy spending and brown envelopes to anyone who support Mzee. That is why the costs and the non-performing loans are growing. But where that money went, is only known by the elite and the NRM. Take a look!
“The analysis of default by the banks’ three largest borrowers and an increase in NPLs by 200 percent revealed large potential losses. It showed that if each bank’s three largest borrowers were to default, with a loan loss of 100 percent, 13 banks would become under-capitalised with an aggregate capital shortfall of USh.513.86 billion. If NPLs were to increase by 200 percent, assuming the increase is in the loss category which requires full provisioning, 9 banks would become under-capitalised with an aggregate capital shortfall of Ush.247.39 billion. A decrease in interest income from government securities would not require any additional capital from the banks” (BoU, P: 4-5, 2017).
“The banking sector’s overall asset quality continued to decline in 2016. The ratio of non–performing loans to total gross loans increased from 5.3 percent in December 2015 to 10.5 percent in December 2016. The increase in the NPL ratio was mainly on account of bad loans which more than doubled from USh.573.4 billion in December 2015 to USh.1,203.2 billion in December 2016” (BoU, P: 15, 2017)
Earnings and Profitability:
“There was a drop in profitability of the banking sector in 2016. Annual after tax profits reduced by 44.2 percent or USh.239.1 billion from Ush.541.2 billion in 2015 to USh.302.1 billion in 2016. Average return on total equity (ROE) dropped from 16.0 percent to 8.3 percent while return on assets (ROA) halved to 1.3 percent during that period. Total expenses grew by 9.3 percent, mostly in the form of interest expense on deposits. Increased provisioning for bad debts also reduced the banking sector’s earnings for the year under review. Provisions rose by more than 100 percent, by USh.419.4 billion to reach USh.637.2 billion in 2016” (BoU, P: 16, 2017).
So this growth isn’t making the economy more healthy. It is more bad loans and losses of profits. The bankers are not benefit ting and the costumers will pay for the shortfall in the long run. The assets and the basic needs will not be covered. The dangerous levels of NPL can even kill of more banks. As the reports not spelling out the names, but saying 9 banks could be under-capitalised, that means the government has to come in with security to put the bank on its feet or trade it off. Like it did with the Crane Bank recently.
Therefore, there are warning signs of continuing to borrow without security for repayment on the debt. That gives way for non-performing loans. This is the whole idea and reason for the problems the 9 banks have. As the costumers and corporations borrowing funds, without capacity to repay. That means the planned interest, the planned profits and repaid funds disappear. So, the more borrowed funds to try to catch the losses, is creating a evil spiral of losses. Instead of generating the profits and interests as anticipated.
Clearly, the banking sector needs a revamp and the system needs a push to make sure they are run smooth. As the consequence of continuing like nothing, is that further banks will default and costumers will lose savings and the state has to cough-up funds to save the scraps of a bank. Peace.
Bank of Uganda – ‘ANNUAL SUPERVISION REPORT’ (December 2016) Volume 7 (06.09.2017)
Today’s release of House of Lords report are worrying signs of poverty, lacking financial education and inclusion of millions of United Kingdoms citizens, the British government and Banking Sector has to due diligence, so that the citizens can be included and have safe transactions of their monies and their salaries. The day-to-day planning and the problematic planning for the future, isn’t supposed to be for so many and such big parts of the population. United Kingdom have about 64 million citizens and the numbers of low-income is now 13.5 million, that is huge part of the total constituency who suffer and struggle day-to-day. Together with the lacking ability to strengthen their financial muscles and use of the limited funds, as the banking are either getting all digital or the banking branches in their rural area has been closed. This with the lacking secure work and the quick loans and credit debt can create an economical environment that is hostile to such amount of segment of the population. That even worsening the trend of lacking financial stability and creating a banking sector for all parts of the population.
Who is excluded from the Financial institutions:
The House of Lord report of reports that in the United Kingdom there are about 13.5 million living in low-income house, young people who in regard has 1 of 5 has bad credit ratings, 600,000 older people who is financially excluded. Between 1989 and 2016, a total of 53% of all Bank Branches has closed. Also since the exclusion of bank branches, the internet access isn’t all over the British isles, therefore the report states that 12 million people lives without internet access in rural areas and also 3.8 million who lives without internet at all. So if the bank branches are closed in these areas and also lacking digital facilitation, than these people are excluded from the financial institutions (HL 132 P: 14, 2017). Also that 1.71 million people doesn’t have bank accounts in 2017, estimated by the report (HL 132, P: 15, 2017). “Research from the Money Advice Service (MAS) has suggested that 16.8 million people—40% of the working-age population—have less than £100 in savings available to them at any time. This alarming figure leaves millions at risk of financial exclusion as savings can provide a buffer to unexpected expenses and reduced income through job loss, illness, or upon retirement. Moreover, 13 million people report that, should they experience a 25% cut in income, they do not have access to enough savings to support themselves for one month” (HL 132, P: 19, 2017).
Serious reason for Financial Exclusion:
“The ongoing closures of bank branches, and an increasing reliance on digital services, pose a number of challenges for customers. The Post Office provides a wide range of banking and financial services through an extensive branch network. The majority of customers, however, are simply unaware that these services exist. The current waste of this untapped potential is not acceptable, and needs to be addressed through a concerted joint effort from Government, the banks and the Post Office” (HL Paper 132, P: 4, 2017).
“Our recommendations are to the UK Government, reflecting the fact that financial policy is considered to be a ‘reserved matter’ under the various devolution settlements that have been made with the constituent nations of the UK. The nature and extent of devolution, however, necessarily means that across some policy areas that proved relevant to the inquiry—particularly, but not only, education—our recommendations might be of more direct relevance to England than they are to Northern Ireland, Scotland or Wales” (HL Paper 132, P: 10, 2017).
Banking Sector Approach:
“The Panel argued that the introduction of a duty of care would lead to cultural change in the banking sector: “A duty of care would engender long-term cultural change in financial services providers. It would bring much-needed clarity to the rules governing the relationship between firms and their customers . . . Firms would no longer be able to adopt a ‘let’s see if we can get away with it’ approach, but would have to avoid conflicts of interest and take their customers’ best interests into account at every stage of their engagement” (HL Paper 132, P: 31, 2017).
Basic Bank Account:
“Basic bank accounts were first introduced to the UK in the mid-1990s, but the offer has expanded and improved in recent years in light of the EU Payment Accounts Directive (PAD), which requires member states to ensure that everyone can access a bank account with “basic features”, and a subsequent agreement between high street banks and HM Treasury” (…) “Barclays and the Co-operative Bank told us that they were taking on more than their share of these loss-making accounts (the Co-operative Bank reported that basic accounts formed some 20% of all their current accounts), and suggested that this was because too many banks did not currently offer the account. Barclays said: “The basic bank account is a key component of financial inclusion. That is a loss-making product but part of our investment in society . . . Ensuring that all banking participants are party to that, not just the subset that is currently signed up to it, is important; otherwise you have people going into the branch of a bank that they think would be great for them and they are told, ‘Sorry, you’re not someone we want to bank. Can you go down the road and be supported by someone else?’ That is not a good” (…) “For HM Treasury, the issue of encouraging banks to promote the basic account was also a matter of not wanting to exacerbate financial exclusion even further: “We do not want people to go into a bank and someone reaches into a dusty drawer and makes them feel as though they are asking for something that is not quite legitimate, so we work closely with the banks to make sure that the basic bank account is part of the normal suite of banking products, and we are very keen to monitor that to make sure that it is.” (HL Paper 132, P: 57-59, 2017).
As you read the quotes from the paper, you understand the difficulty that is there, and the lacking polices and financial inclusions, as the modern state and the open market theory combined with down-turn of steady paying jobs have left the low-income households and older people left behind. These sort of struggles are combined with the centralization and digital financial products that is not understood and is harder for many to learn. As much as the banks are likely to hold on to costumers that are costly and carry losses on, than the ones who creates the fortunes and vast profits. These sort of programs has to established as by law, to make sure the banking sector complies and opens their gates to the ones in need and also supply them with education to use the financial instruments. This is because with lacking knowledge the costumers and citizens wouldn’t know about the possibilities they have with their paycheck and their earnings. Therefore, they are not only losing out on the standard option, but also on future needed services. That should be a concern for any serious government, that the citizens get parts of the financial institutions and get their own accounts to secure their day-to-day, but also to plan their future.
That a state like United Kingdom, one of the key members of European Union, would have so many millions in levels of low-income households, has such amount of people living on the outside of the banking sector was for me discouraging, as this one of the modern states who is a pillar in faith of building society and when that society doesn’t have the capacity to involve such amount of citizens into monetary safety, it is worrying and also a signal of needed change in the HM Government and by the Banking Sector. This is not something the White Hall, the Westminster or anyone representing their constituency on the British Isles should accept. There are lots of work to do, but the people need to be aware and scream for change. Peace.
HL Paper 132 – ‘Tackling financial exclusion: A country that works for everyone?’ (25.03.2017) link: https://www.publications.parliament.uk/pa/ld201617/ldselect/ldfinexcl/132/132.pdf
We have all now at some point if we have followed the news cycled heard about the Podesta leaks from Wikileaks; I have already had a few pieces on it and there is still lot’s detail that deserves to be looked and showed. Hillary Rodham Clinton is the Democratic Party Presidential Nominee and running with bravura in her campaign. This is because the leaks show the Democratic Party behavior and her real moderate political framework.
With her moderate mind and positive faith in Wall Street doing their own thing; the paid speeches and transcripts from Goldman Sachs show even more what kind of economic policies that her administration would put forward. If not what she would not do; here they are:
“*Clinton Said, With Dodd-Frank, There Was “A Need To Do Something Because For Political Reasons” Because Members Of Congress “Can’t Sit Idly By And Do Nothing.” *“And with political people, again, I would say the same thing, you know, there was a lot of complaining about Dodd-Frank, but there was also a need to do something because for political reasons, if you were an elected member of Congress and people in your constituency were losing jobs and shutting businesses and everybody in the press is saying it’s all the fault of Wall Street, you can’t sit idly by and do nothing, but what you do is really important.” [GS2, 10/24/13].
She has been saying that Dodd-Frank is a positive first step of regulation of the Wall Street after the too big to fail banks after the recession. Hillary Clinton is claiming that Dodd-Frank is the reason for American People losing jobs, not securing it through the regulations put forward, even how weak they are. Dodd-Frank is not perfect, but first step to regulate a market that has been free-for-all for ages. Therefore, a bank like Goldman Sachs wants to be totally free again!
*Tim O’Neill Told Clinton “We Really Did Appreciate It” When She Had Been “Courageous In Some Respects To Associated With Wall Street And This Environment.” *“MR. O’NEILL: By the way, we really did appreciate when you were the senator from New York and your continued involvement in the issues (inaudible) to be courageous in some respects to associated with Wall Street and this environment. Thank you very much. SECRETARY CLINTON: Well, I don’t feel particularly courageous. I mean, if we’re going to be an effective, efficient economy, we need to have all part of that engine running well, and that includes Wall Street and Main Street. And there’s a big disconnect and a lot of confusion right now. So I’m not interested in, you know, turning the clock back or pointing fingers, but I am interested in trying to figure out how we come together to chart a better way forward and one that will restore confidence in, you know, small and medium-size businesses and consumers and begin to chip away at the unemployment rate. So it’s something that I, you know, if you’re a realist, you know that people have different roles to play in politics, economics, and this is an important role, but I do think that there has to be an understanding of how what happens here on Wall Street has such broad consequences not just for the domestic but the global economy, so more thought has to be given to the process and transactions and regulations so that we don’t kill or maim what works, but we concentrate on the most effective way of moving forward with the brainpower and the financial power that exists here.” [GS2, 10/24/13].
Here again, Clinton are saying it is the people who doesn’t see the engine of Wall Street and their works, they are not understanding the efforts of Wall Street to the Main Street. What she is saying is that people should visit Wall Street and therefore understand their actions that effects global and local activity. The People are supposed to be proud of the Wall Street and their ways the businesses acts. So the Moderate Clinton is praising the greedy and mechanisms that eats of the plate without consideration of Main Street America.
*Speaking About Financial Regulations, Clinton Said “The People That Know The Industry Better Than Anybody Are The People Who Work In The Industry.” *“There’s nothing magic about regulations, too much is bad, too little is bad. How do you get to the golden key, how do we figure out what works? And the people that know the industry better than anybody are the people who work in the industry.” [GS2, 10/24/13].
This point Clinton has done before, she has so little faith in regulations, as with Dodd-Frank that she praised her involvement in, still with Goldman Sachs she acts that it is problem. This with the regulations that are keeping the banks regulated and to act to a standard instead of following their greed instead of serving their costumers and citizens; the banks are nobody without accounts and costumers who are earning money, not only the stakeholders and Wall Street cynic attitude that yield positive results. Something that regulators have to consider so that the people’s tax-money is not doled on banks who has earned on the blood of the common man as it happen after recession. Something Dodd-Frank we’re out to stop!
*Clinton Said “I Represented All Of You For Eight Years. I Had Great Relations And Worked So Close Together After 9/11 To Rebuild Downtown.” *“I represented all of you for eight years. I had great relations and worked so close together after 9/11 to rebuild downtown, and a lot of respect for the work you do and the people who do it, but I do — I think that when we talk about the regulators and the politicians, the economic consequences of bad decisions back in ’08, you know, were devastating, and they had repercussions throughout the world.” [GS2, 10/24/13].
That the repercussions we’re because of the free-markets we’re allowed to make sophisticated business-models that earned the bankers and not the citizens who risked it all on the real-estate market and borrowed through the roof. The Dodd-Frank we’re to stop these mechanisms; if regulations are so bad than the people are used to blead so the bankers can live life like real-life Gatsby! Is that what Clinton really wants in her moderate world?
*Clinton Said “Banks Are Not Doing What They Need To Do Because They’re Scared Of Regulations, They’re Scared Of The Other Shoe Dropping.” *“I mean, right now, there are so many places in our country where the banks are not doing what they need to do because they’re scared of regulations, they’re scared of the other shoe dropping, they’re just plain scared, so credit is not flowing the way it needs to to restart economic growth. So people are, you know, a little — they’re still uncertain, and they’re uncertain both because they don’t know what might come next in terms of regulations, but they’re also uncertain because of changes in a global economy that we’re only beginning to take hold of.” [GS2, 10/24/13].
So the continued praise of anti-regulations, the moderate free-market and belief that the banks can monitor themselves. She is saying to them that Dodd-Frank and such is bad! That the people of Goldman Sachs hearing that they could be allowed to do anything. This is what we can expect from her now and I am not surprised, it’s not like these banks wants to be regulated and have the Federal Government telling them how to act. They are regulated for the safety of the costumers, which is the people and also the Stakeholders doesn’t blead blood out of stones. Something Clinton believes in or selling Goldman Sachs. Peace.
Some people have asked for this a long time as we all who has followed politics knows that the Democratic Party Presidential Candidate Hillary Rodham Clinton has a track-record for paid speeches and earnings while being a career politician. This is a legacy she has left behind, neither if she likes it or not.
Hillary Clinton has been asked if she can reveal her transcripts or manuscripts for the speeches to the dozen of companies who has earned her millions. Therefore the these scripts proves her real belief, she is not an progressive as she made to believe to kick-out Bernie Sanders in the Democratic Party Primary.
To the Xerox on her Political Stance:
“*Clinton Said That Both The Democratic And Republican Parties Should Be “Moderate.” *“URSULA BURNS: Interesting. Democrats? SECRETARY CLINTON: Oh, long, definitely. URSULA BURNS: Republicans? SECRETARY CLINTON: Unfortunately, at the time, short. URSULA BURNS: Okay. We’ll go back to questions. SECRETARY CLINTON: We need two parties. URSULA BURNS: Yeah, we do need two parties. SECRETARY CLINTON: Two sensible, moderate, pragmatic parties.” [Hillary Clinton Remarks, Remarks at Xerox, 3/18/14]
She is more pragmatic and moderate, than Progressive, something the TYT have for instance been truthful about all along, and me too as that has been playing for the gallery and not her true self. In the next ones she proves that the Perception of the leaders of the Market and Economic framework, as will be shown about her true belief in banking when talking to the Goldman Sachs, Banco Itau and the Duetsche Bank. Here she proves her real allegiance with the banks and not with citizens who pays for the wealth of the banks while their house-market defaulted.
To the Duetsche Bank in 2014 on the Economy:
“*Clinton: “Even If It May Not Be 100 Percent True, If The Perception Is That Somehow The Game Is Rigged, That Should Be A Problem For All Of Us.” *“Now, it’s important to recognize the vital role that the financial markets play in our economy and that so many of you are contributing to. To function effectively those markets and the men and women who shape them have to command trust and confidence, because we all rely on the market’s transparency and integrity. So even if it may not be 100 percent true, if the perception is that somehow the game is rigged, that should be a problem for all of us, and we have to be willing to make that absolutely clear. And if there are issues, if there’s wrongdoing, people have to be held accountable and we have to try to deter future bad behavior, because the public trust is at the core of both a free market economy and a democracy.” [Clinton Remarks to Deutsche Bank, 10/7/14].
To Goldman Sachs on Banking Regulations:
Speaking About The Importance Of Proper Regulation, Clinton Said “The People That Know The Industry Better Than Anybody Are The People Who Work In The Industry.”* “I mean, it’s still happening, as you know. People are looking back and trying to, you know, get compensation for bad mortgages and all the rest of it in some of the agreements that are being reached. There’s nothing magic about regulations, too much is bad, too little is bad. How do you get to the golden key, how do we figure out what works? And the people that know the industry better than anybody are the people who work in the industry. And I think there has to be a recognition that, you know, there’s so much at stake now, I mean, the business has changed so much and decisions are made so quickly, in nano seconds basically. We spend trillions of dollars to travel around the world, but it’s in everybody’s interest that we have a better framework, and not just for the United States but for the entire world, in which to operate and trade.” [Goldman Sachs AIMS Alternative Investments Symposium, 10/24/13].
As she has shown here is her real belief in the market handling them and she says that the ones knowing it is the ones working in it. Hillary isn’t really for regulations and even remarking that their either complaints about too much or too little.
To Banco Itau in the 2013 on an Open Market:
“*Hillary Clinton Said Her Dream Is A Hemispheric Common Market, With Open Trade And Open Markets. *“My dream is a hemispheric common market, with open trade and open borders, some time in the future with energy that is as green and sustainable as we can get it, powering growth and opportunity for every person in the hemisphere.” [05162013 Remarks to Banco Itau.doc, p. 28]
If you ever thought she was against the Trans-Pacific Partnership (TPP) agreement that will be beholden for the corporations and not for the citizens, the ones leading to the clear permits of more control of businesses over regulations. As the trading will counter the values of national states and governments as the work regulations is less important than the value of an Open-Market. Well, then some on technology.
On Blackberry and Technology in 2014:
“Clinton Said When She Got To State, Employees “Were Not Mostly Permitted To Have Handheld Devices.”* “You know, when Colin Powell showed up as Secretary of State in 2001, most State Department employees still didn’t even have computers on their desks. When I got there they were not mostly permitted to have handheld devices. I mean, so you’re thinking how do we operate in this new environment dominated by technology, globalizing forces? We have to change, and I can’t expect people to change if I don’t try to model it and lead it.” [Clinton Speech For General Electric’s Global Leadership Meeting – Boca Raton, FL, 1/6/14].
Here is even more news on Colin Powell, he seemed like ghost being mentioned lots, especially after his own e-mails we’re hacked where he profoundly spoke ill of Trump and endorsed Clinton, if I remember correctly. Here Clinton in Baca Raton in Florida and want to lead it, not being follower; that is what she asks of the men and woman in General Electric; she wants the giant company to lead and not follow. That shows her way of selling stories to her crowd. Surely something she has done during the campaign and will continue until she ends in the White House like her husband in the past.
What is clear is the manner of which she is proving to moderate, open-free-market, belief in self-governing banks and the will of TPP. So the talk that Obama made it into the Congress and Senate to shield Clinton is a blatant lie and the world should know it. Peace.
“Munir Sheikh Ahmed officially exited National Bank of Kenya. The former Managing Director and Chief Executive Officer was suspended on March 29th over allegations of fraud. The bank’s board sent out formal notices to the Nairobi Securities Exchange which also indicated two more official exits from NBK. These are Boniface Biko who was the Executive Director in charge of Corporate Institutional and Business Banking, as well as the Chief Finance Officer, Chris Kisire. The three former senior managers are among the 6 who had been suspended over breach of fiduciary duty” (NTV Kenya, 2016).