Central Bank Kenya to resume licensing of new banks

Kenya Banking Sector

According to Central Bank of Kenya Dr Governor Patrick Njoroge, the regulator will soon begin licensing of new banks after it freezed the exercise in November 2015 on concerns that most local banks were undercapitalized as compared to the foreign banks operating in Kenyan soil.

“We shall re-introduce licensing of new lending institutions very soon. We have also made huge improvements so far and I am glad to say that the moratorium will be lifted ” said the Dr Patrick Njoroge without giving the exact timelines.

The Governor also noted that CBK’s supervision department has improved with capacity to closely monitor adverse risks in the banking sector.

On Chase Bank & the Banking Sector

The CBK Governor further said that they are in talks with new investors seeking to buy the troubled Chase Bank and bring it back to profitability, an exercise he hopes will be completed by March of 2017.

“There is huge interest in the local financial sector and this is evident because of the amalgamation and acquisition of banks that we have seen this year. CBK welcomes this interest” added Njoroge.

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