Re: EQUITY BANK- Is it kenyas other Pyramid scheme ???????

Bwana Rotich,

If Equity Bank was to go down, it will sink with shareholders and depositors' money. The collapse of Equity can take as few as 2 days. All it will take to bring down the bank is to circulate rumors that the bank is collapsing. The next day you will have depositors queuing up to withdraw their money. And equity will be there no more.

Asking us to advise our relatives to withdraw their money is not going to help all our relatives because the bank doesn't have enough money to give bank to our relatives. No bank in the world can give half their customers their deposits the moment they demand them. As "a banker" you know that banks operate on a Fractional Reserve Banking system. This means that when you deposit sh 1,000; and Central Bank requires the bank to keep 20% in reserve; the bank will loan out sh 800. If you were the only depositor, the bank can only give you sh 200 from your original 1,000.

What about the share holder? She will lose her money. All the current employees of Equity will lose out too. The only people who will gain are the crooks behind the deals you pointed out. I believe that a strong equity bank that plays by the rules will be of benefit to all.

If you looked at the history of some multinational banks -that will benefit from the collapse of Equity- you will find out that they engaged in crimes against himanity. Barclays Bank for example was founded by 2 slave traders named David and Alexander Barclay. Barclays was also instrumental in colonial rule in Kenya. Barings Bank and the Bank of England thrived on selling humans like animals. Big insurance companies like Lloyd's were kept afloat by insuring slave ships and slave traders.

People in Kenya have not withdrawn their money from Barclays despite the bank's sadistic past. I believe that we can save Equity and build it to serve the customers that big banks like Barclays have neglected for years. It is of great benefit to us as a nation to have all the money kept under the pillows moved into our banking system. This will not only help make capital available at lower interest rates but it will also create more jobs.

How can we help Equity grow? By asking out legislators to straigten operations at the NSE. Current laws make the NSE vulnerable to insider trading among other unethical practices. Parliament also has the mandate to watch out for our interests through her committees. Top officers of Equity, the NSE, and CBK need to be subpoenaed by Parliament to tell Kenyans -under oath- about the alleged malpractice. Parliament will then recommend remedies to the problems.

Spreading rumors will not help you and other Kenyans.

Mosaisi