Details

  • Service: Advisory
  • Type: Press release
  • Date: 5/3/2013

Bank Transformation 

The recent publication of the Central Bank of Kenya (CBK) revised Prudential Guidelines and Risk Management Guidelines sets the scene for significant enhancements in risk and capital management in the Kenya banking industry and affected financial services organisations. The beneficial impact will filter through to the entire economy and contribute to domestic financial stability and regional financial soundness.
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The revised guidelines signal the adoption of many of the leading regulations and current regulatory reforms affecting banks, in particular, and financial services, in general. The Prudential and Risk Management guidelines specifically require the banking industry to adopt leading risk and capital management practice in the management of credit risk, market risk, operational risk and liquidity risk, among other risk types. The implications are that banks must hold minimum levels of capital for potential exposure to these important risk categories, to protect stakeholders.

 

The recommendations of the Basel Committee on Banking Supervision are largely recognised in the CBK guidelines, including practices specified in Basel II and Basel III – global standards for the management of key financial risks affecting internationally active banks...Read more