DEFAULTS IN EA
Loan defaults are currently a problem across the East African market having touched a decade high in Kenya. The National Bank of Rwanda and the Bank of Tanzania have raised the red flag in their respective markets over nonpayment of loans. The three countries have nonperforming loans at more than 10 per cent of the total loan book, underlining the exposure by banks.
provisions, because it means you have been prudent in your provisioning,” said Mr Omari.
Some of the large lenders with nil provisions are Barclays, Standard Chartered and Diamond Trust
International lenders are expected to bear the brunt of provisioning for off balance sheet items, such as letters of credit and trade guarantees, where they have been dominant leveraging on their global brands.
Standard chartered has invested Ksh115 billion ($1.15 billion), more than its loan book, in the off