The Central Bank of Kenya (CBK) has given the nod to 33 out of 39 commercial banks to implement lending to customers based on their risk profile.
Riskier borrowers are charged higher interest rates compared to those with better creditworthiness.
The apex bank which has been reviewing the pricing models of individual banks for the past three years says it will now be focusing on overseeing the models implementation as the approved lenders move to effect the new loan-pricing metrics.
“We have engaged banks individually on their pricing models and have so far concluded these discussions with 33 of 39 banks and they have proceeded with rolling out their risk-based credit pricing models and we will be reporting their implementation,” CBK Governor Patrick Njoroge said on Wednesday.
While the apex bank did not disclose the names of individual banks with the nod, the approvals likely include most of tier I banks after the large lenders were mainly sidelined in initial approvals.
The Central Bank of Kenya (CBK) has given the nod to 33 out of 39 commercial banks to implement lending to customers based on their risk profile.
Riskier borrowers are charged higher interest rates compared to those with better creditworthiness.
The apex bank which has been reviewing the pricing models of individual banks for the past three years says it will now be focusing on overseeing the models implementation as the approved lenders move to effect the new loan-pricing metrics.
“We have engaged banks individually on their pricing models and have so far concluded these discussions with 33 of 39 banks and they have proceeded with rolling out their risk-based credit pricing models and we will be reporting their implementation,” CBK Governor Patrick Njoroge said on Wednesday.
While the apex bank did not disclose the names of individual banks with the nod, the approvals likely include most of tier I banks after the large lenders were mainly sidelined in initial approvals.
