Stanbic Bank Kenya has restructured KSh 30billion loans as the lender seeks to cushion customers who have been hit by the coronavirus crisis.
Speaking on the Kenya Bankers Association ‘My Chat with a Ceo, Stanbic chief executive Charles Mudiwa revealed that the restructured loans for their customers have been through giving them repayment holidays, interest rate moratoriums, modifications of their facilities as well as complete restructuring.
Mudiwa noted that the negative impact coronavirus pandemic is having to business and households is become dire stating that ‘COVID-19 is slowly becoming endemic’.
“In this respect, banks have offered business loan restructures and payment moratoriums. In addition to loans, banks have also reduced charges like balance inquiries and waived charges on digital payments through PesaLink,” he said.
He added: “Banks are actively looking at how they can assist clients during this period. They also have a responsibility toward their depositors by ensuring that the money they lend is paid back. As a result, they have to balance between supporting borrowers and guaranteeing returns to depositors. Most personal loans do not require collateral.”
How to manage your personal finances
Mudiwa emphasized that the volatility being witnessed in the market and given that COVID-19 is still evolving, no one can guarantee stability at this point.
“However, as we all start to understand the crisis, we will start to see stability returning.”
“The critical thing is sustainability through COVID-19 is to conserve case, identify good costs, and remove bad costs, be agile and innovative, and seize any new opportunities that come.”
He proposed the following measures for households:
- Prepare a family budget
- Conserve as much cash as you can.
- Minimize all unnecessary expenditures.
- Ask your bank to reschedule all loans that you have.
- Protect all your income sources.
- Ensure you have a retrenchment cover.
- Invest in secure assets.
For those who are planning to retire, he also gave the following advise:
- Know your financial freedom number, which is the minimum amount of money you need to survive when you retire.
- Build up savings that generate that financial freedom number.
- Invest in secure assets.
- Create a routine activity that will keep you busy.
- Think of something that you can give back to the community, either as services or volunteering or skill etc.
“Some of the secure assets one can consider include: Government stock, savings in a strong financial institution, or you can consider gold and for the long-term, property.”
“My Chat with a Bank CEO” is an unprecedented social media event presented by the Kenya Bankers Association (KBA). It is an interactive forum where the public participates in the #CEOChat sessions during which different bank Chief Executive Officers share information and receive feedback on various aspects of banking.
Under the theme: “Supporting Customers in the Coronavirus Disruption”, the May 2020 Ceo Chat featured Martin Mugambi, Citibank, Jeremy Awori, ABSA Bank, and Charles Mudiwa, Stanbic Bank who engaged the public on industry initiatives banks have taken to cushion the banking public against the challenges created on businesses by the Coronavirus disease disruption in the country.