The Central Bank of Kenya through Governor Deputy, Sheila M’Mbijiwe, articulates that tough rules for banks have always been there.
CBK blamed laxity in the implementation for problems that have recently dogged some lenders. Speaking Yesterday, CBK deputy warned against relaxation of rules in the banking sector, saying any lapse in regulation poses a threat to Kenya’s financial system.
“There are no new laws in the banking sector. We are just implementing the laws that were in place. We call on the financial institutions to abide by these laws,” she said citing cited the global financial crisis of 2007-08,
She added that the CBK, as a regulator, is not targeting any financial institution, but only interested in seeing the local banks grow to become strong and vibrant and safeguard interests of depositors.
She urged financial institutions to appoint competitive and independent board of directors.
“I challenge the board of directors to be independent and speak out. They should not be timid when it comes to decision making,” she said.