All of a sudden, everybody - including those who cannot differentiate a balance sheet from a profit and loss account - are telling all those who care to listen that the Kenyan banking industry is going to hell in a hand basket.
They imagine, wrongly, that stability is a function of size and profitability; the bigger and the more profitable, the better - following therefore that the reverse is true.
They equally imagine, wrongly again, that the classification of banks in tiers - Tier 1, 2, and 3 - is in order of vulnerability; Tier 1 is less vulnerable than Tier 2 which is less vulnerable that Tier 3.
Their conclusion: the banking industry is having a Coyote moment in every episode - careless and accident prone! and people believe them.
Talk of gullibility on the part of the self-declared experts that feeds into the understandable anxiety of depositors!
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