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Corporate

2017 set to be year of reckoning for an industry that has defied economic cycles for a decade

All eyes are on CBK Governor Patrick Njoroge's game plan in 2017 as sector yearns for stability, growth. GRAPHIC | BUSINESS DAILY
All eyes are on CBK Governor Patrick Njoroge's game plan in 2017 as sector yearns for stability, growth. GRAPHIC | BUSINESS DAILY 

Judging by developments in 2016, keen followers of the banking industry believe 2017 could be a year of reckoning being the first full year in which the lenders will contend with interest rate caps, low public confidence and a cyclical slowdown of the economy due to upcoming elections.

The pain is expected to be especially sharper because this is an industry that has enjoyed more than a decade of robust growth in profits and assets before it was hit by the shocker of interest rate caps.

Besides, 2016 is the year in which one more bank followed the two in the previous year down the path of collapse, bad loans spiked, scandalous transactions were laid bare and financial statements were queried denting public confidence in the industry.

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