In terms of statistics, what are the projections of the banking sector performance in the coming months?
The outlook for Kenya’s banking sector remains impressive against a backdrop of renewed optimism in the economy, coupled with prevailing levels of capitalisation, sound risk management systems, strong asset quality and profitability that the banking sector is currently enjoying. The Central Bank of Kenya’s latest Monthly Economic Review shows the banking industry’s deposits surpassed Sh1 trillion mark to expand by 10.4 per cent to Sh1.01 trillion in October 2009 from Sh918.7 billion a year earlier. ABC Bank increased its profits by 14.46 per cent. Its total assets rose to KSh8.8 Billion in 2009 from KSh6.6 Billion in 2008, an increase of 34.38 per cent. Significantly, the Bank’s deposits increased in 2009 by KSh1.83 billion to stand at KSh7.17 Billion. Q: Have government’s fiscal policies helped stimulate banking? A: I commend Central Bank of Kenya (CBK) for its accommodative monetary policy geared to cushioning the economy from any negative shock. The reduction of the Cash Reserve Rat
