Bank CEOs step up push for loan rate formula review

The chief executive officers of commercial banks have stepped up the push for the review of the loan pricing framework, calling for the creation of a single industry benchmark to cut loan costs as borrowers fail to feel the relief of falling domestic rates.

The push to review the risk-based loan pricing framework comes as the lenders reveal talks with the Central Bank of Kenya (CBK) to overhaul their models to come up with a common base lending rate amid concerns from borrowers over sticky interest rates.