When Equity Bank started on its journey to becoming a financial institution of repute, it largely focused on the unbanked poor —’the watchmen, grocery sellers and small-scale farmers’. The folk that propelled Equity Bank into being one of the largest financial institutions in the region are however now threatening to drag down the bank with an avalanche of bad loans. Since the law capping interest rates came into place, Equity Bank said it has increasingly found it difficult to advance credit to micro enterprises due to low returns. Equity Bank CEO James Mwangi, who spoke on Thursday at an investors’ briefing said the earnings on loans advanced to the very small entrepreneurs and low income customers were marginal and ultimately unsustainable. ALSO READ: Equity Bank scoops 19 prizes at banking awardsHe has advised prestigious institutions such as United Nations on providing banking facilities to the poor.

Source: Standard Digital May 28, 2017 09:11 UTC