CBK projects growth for banking sector
06 June 2014, 12:32
Nairobi - The Central Bank of Kenya (CBK) said that the local banking sector was robust and stable as it registered enhanced performance in the past year.
According to the just released Bank Supervision Report 2013 published by the central bank, the positive performance by the banks was indicated by the growth in assets, customer deposits, gross loans and pre-tax profit.
The report further addedthat the sector was projected to sustain the growth momentum in 2014.
“The Kenyan banking sector registered improved performance in 2013 notwithstanding the marginal economic growth,” said CBK Governor, Njuguna Ndungu.
Governor Ndungu said that the sector registered a 15,9 percent growth in total net assets from Sh 2.33 trillion in December 2012 to Sh 2,70 trillion in December 2013.
Customer deposits grew by 13,5 percent from Sh 1,71 trillion in December 2012 to Sh 1,94 trillion in December 2013.
The Central Bank meanwhile continued with the easing of the monetary policy since the second half of 2012 following the overall decline in inflation.
“The Central Bank Rate which signals the stance of monetary policy was lowered twice in the year 2013, from 11.0 percent in December 2012 to 9.5 percent in January 2013 and to 8.5 percent in May 2013,” said the CBK report.
The report stated that the CBK implemented various reform measures geared towards strengthening the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime.
These included issuance of the Money Remittance Regulations in April 2013. This provides for the regulation and supervision of money remittance providers.
The signing of the Memorandum of Understanding with the Financial Reporting Centre in September 2013 aims to enhance the bilateral co-operation on Anti-Money Laundering and Combating the Financing of Terrorism and supervision of financial institutions licensed by CBK.
– CAJ News
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