New accounting standards could affect bank lending

One of the changes expected under the new regime is loaning terms. FILE PHOTO | NMG

One of Kenya’s biggest lenders has recently announced it was weighing the prospect of cutting back on disbursement of personal loans guaranteed by salaries.

This impending change in lending strategy is apparently being driven by expected coming into force of International Financial Reporting Standards (IFRS) 9, a new accounting guideline for financial instruments in January 2018.

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