Full capital headache for banks

A customer is served at the Kenya Commercial Bank (KCB) in Nairobi on January 24, 2018. PHOTO | SIMON MAINA | AFP

Commercial banks are entering the final quarter in which they are allowed a waiver from higher capital requirements under a more conservative accounting standard that was introduced in 2018.

A number of lenders ended last year in breach of some of the capital adequacy ratios that are used to measure the health of banks— core capital to total risk-weighted assets, total capital to total risk-weighted assets, and core capital to total deposits.

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Note: The results are not exact but very close to the actual.