Is CBK introducing price control on loans? Banks caution borrowers over proposed regulations
4 Articles
4 Articles
Banks Oppose Proposal to Cap Lending Rates Using CBR
Kenyan banks have opposed a proposal by the Central Bank of Kenya’s (CBK) to adopt the Central Bank Rate (CBR) as the sole base reference for pricing loans, with a fixed premium (“K”) added to determine final lending rates. Kenya Bankers Association (KBA), which promotes reliability and professionalism in the banking sector, says it does … The post Banks Oppose Proposal to Cap Lending Rates Using CBR first appeared on Metropol Digital.
Kenyan banks reject Central Bank's new loan pricing model
Kenyan commercial banks have rejected a proposal by the Central Bank of Kenya (CBK) to introduce a new loan pricing model that would use the Central Bank Rate (CBR) as the benchmark for pricing credit, paired with a lending premium known as “K”. Instead, they are backing the interbank rate— the rate at which banks lend to one another—as a more market-sensitive benchmark. On Thursday, the Kenya Bankers Association (KBA) said it is open to dialogu…
CBK Loan Pricing Shift Sparks KBA Concerns
The Kenya Bankers Association (KBA) has expressed concerns over the Central Bank of Kenya’s (CBK) proposed shift from the Risk-Based Credit Pricing Model (RBCPM) to a standardised lending rate based on the Central Bank Rate (CBR) plus a disclosed premium, referred to as “K.” The KBA warns that it could effectively reintroduce loan price controls, [...] The post CBK Loan Pricing Shift Sparks KBA Concerns appeared first on Khusoko - East African M…
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