Banks term capital rules on large lenders ‘premature’ - Business Daily

Kenyan lenders have rejected the draft prudential guidelines for domestic systemically important banks, arguing that the timing is wrong as the industry moves towards a higher minimum core capital requirement of 10 billion shillings. The Kenya Bankers Association expressed concerns over reduced lending as banks, both large and small, build up capital buffers to meet the new CBK rules. The sector is adjusting to the increased capital requirement, with fears that these rules could limit lending capacity. Banks believe the rules are premature given the current industry conditions.