Kenya's central bank shakes up banking Industry with 10x capital hike
Kenya's central bank shakes up banking Industry with 10x capital hike Kenya's Central Bank to Raise Minimum Capital Requirement for Commercial Banks Tenfold The Central Bank of Kenya ( CBK ) is set to significantly increase the minimum capital requirement for commercial banks, raising it tenfold to $77.8 million (KES 10 billion) , Finance Minister Njuguna Ndung’u announced on Thursday, 13 June 2024 . This development will: increase stability: With more capital, banks should be better able to weather financial crises and avoid collapse. This could protect depositors' money and make the overall financial system more secure. be a challenge for small banks: The new requirements could be difficult for some smaller banks to meet. They may need to merge with other banks or raise money from investors in order to stay in business. This could reduce competition in the banking sector. This substantial hike in capital requirements aims to bolster the resilience of Kenya's banking sector against potential financial risks, such as cyber fraud and economic shocks.…
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