Kenya’s Banking Sector regulator,Central Bank Kenya has suspended licensing of new commercial banks until further notice but the order exempts amalgamation, acquisition of banks comes after Dubai Bank and Imperial Bank were placed under receivership.However, CBK did not give a reason for the moratorium.Currently there are there are 43 licensed commercial banks and one mortgage finance company,Housing Finance Group.
The CBK Governor while appearing before the Senate committee said that the regulator will conduct a thorough audit of all banks to ensure correct information is given to the public in order to avoid Imperial bank and Dubai Bank scenarios.
Mr Njoroge added that said they would thoroughly audit the financial data and IT systems in all banks to get the actual health of a bank in order to protect the banking sector.
“We need to go deeper down interrogating the loan by loan data in the system and not just the reports that indicate the total loans,” he said.
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