Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
Borrowing between banks rises to record Sh577bn on low liquidity
In 2023, the CBK modified its monetary policy framework by creating an interest corridor around the CBR as a means of mediating lower borrowing costs between banks.
Banks borrowed a record Sh577 billion from each other last year as the high-interest rate environment forced them to rely on the interbank market to meet funding requirements.
Fresh data from the Kenya Bankers Association (KBA) shows that the borrowings, which are recorded as placements with other banking institutions under the assets column, jumped to 7.5 percent of the industry’s total assets compared to four percent in 2022.
