Role of financial institutions and the central bank in kenya essay
Embassies abroad. To act as banker and adviser to, and as fiscal agent of the Government.
Sub-section 2 of Article of the Constitution provides for the role of the CBK thus: formulating monetary policy, promoting price stability, issuing currency and performing other functions conferred on it by an Act of Parliament. Bank Supervision The Central Bank provides legal and regulatory framework and issues prudential guidelines to govern the operations of financial institutions under its mandate.
Central bank of kenya data
To hold and manage foreign exchange reserves. Currently there are 28 domestic and 14 foreign commercial banks with branches, agencies, and other outlets throughout the country; one mortgage finance company; eight representative offices of foreign banks; eleven licensed deposit taking microfinance institutions; 49 insurance companies; the Post Office Savings Bank with a large network of branches around the country; 79 foreign exchange forex bureaus; three licensed credit reference bureaus, 14 money remittance providers and about deposit-taking licensed savings and credit cooperative organizations SACCOs with a membership of over 3 million Kenyans. Supply shocks exist in two forms; negative supply shock and positive supply shock. Embassies abroad. It also licenses and undertakes surveillance of the financial institutions to ensure compliance with laws and regulations. To foster the liquidity, solvency and proper functioning of a stable market-based financial system. A central Bank is distinguished from a normal commercial bank because it has a monopoly and creating the currency of that nation, which is usually that Nations legal tender. Payment and Settlement Systems Safe and efficient payment and settlement systems is a key component of an effective and efficient financial sector. In addition, smaller banks have emerged and experienced tremendous growth in recent years. To license and supervise authorized dealers. Short term loans are also provided on mobile money platforms with a minimum repayment period of thirty days.
Department of Commerce utilizes its global presence and international marketing expertise to help U. With the advent of mobile money and integration with the formal banking systems, the number of Kenyans with access to electronic financial services has grown rapidly.
All these efforts are geared towards fostering liquidity, solvency and proper functioning of the financial system.
The central bank often also oversees the commercial Banking system within its country. Kenya has many banks.
The Central Bank of Kenya which governs banks further classifies commercial banks based on their assets. The primary classification of banks in Kenya is by ownership.
based on 116 review