The Central Bank of Kenya (CBK) has cautioned against “erroneous information” by “malicious actors” on the stability of the country’s banking system.
- •Although it was not immediately clear what the CBK was referring to, it is likely related to a series of online posts implying a widespread bank run, and alleging mitigation measures including withdrawal caps.
- •The posts have since grown in scope, including amplifying some of the issues that have become more common since the country’s banking system was gray listed in February for weaknesses in its anti-money laundering regime.
- •CBK’s cautionary statement indicates a growing concern of the effect of the posts and rumours.
“CBK has not issued any press release, or other information with regard to the operation of the banking sector or any other element of its mandate,” the apex bank said in a statement on Wednesday evening.
Some posts have implied that banks have imposed an unofficial “withdrawal cap” to limit the effect of mass withdrawals, without any evidence. Others have implied that it is an effect of not being compliant with the Basel III regulations, developed in response to the 2007-09 financial crisis to manage risk and strengthen regulation and supervision.
“The intent behind these malicious attempts is usually to induce panic, leading to action which may destabilise the market,” the Central Bank added in the statement.
“The Kenya Banking Sector is at its strongest in capital, liquidity and other measures,” NCBA Group Managing Director and Kenya Bankers Association (KBA) Chair John Gachora said in a series of online posts. “The recent announcement by JP Morgan to enter Kenya is a testament to the robust regulatory environment that the CBK has created.”
