CBK Flags Seven Banks Over Sh3 Billion Minimum Capital Requirement
The Central Bank of Kenya (CBK) has flagged seven commercial banks for failing to meet the minimum core capital requirement of Sh3 billion. In its latest Bank Supervision Annual Report, the regulator said the seven lenders were in violation of Section 7(1) of the Banking Act, which sets the minimum core capital requirement at Sh3 [...] The post CBK Flags Seven Banks Over Sh3 Billion Minimum…
The Central Bank of Kenya (CBK) has identified seven commercial banks for not meeting the minimum capital requirement of Sh3 billion, as stated in the latest Bank Supervision Annual Report. This regulatory action follows the increase in the minimum core capital requirement from Sh1 billion to Sh3 billion, as outlined in Section 7(1) of the Banking Act.
The CBK aims to progressively raise this threshold to Sh10 billion, with the adjustments implemented in phases to allow banks sufficient time to bolster their capital positions. Besides failing to meet the capital adequacy standards, the report reveals that five banks breached Section 18 of the Banking Act and the CBK Prudential Guideline on Capital Adequacy.
Four banks were unable to achieve the requisite 10.5% core capital to total risk-weighted assets ratio, while three banks fell short of the 8% core capital to total deposits ratio.
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