Banks term capital rules on large lenders ‘premature’

Lenders have rejected the recently published draft prudential guidelines on domestic systemically important banks, arguing the rules by the Central Bank of Kenya (CBK) have the wrong timing as the industry simultaneously moves towards a higher Sh10 billion minimum core capital requirement.

The Kenya Bankers Association (KBA), the banking sector lobby, has expressed concerns over reduced lending by the industry as both large and small banks build up capital buffers to meet new CBK rules.