• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Barclays sounds the alarm on banking overregulation

Kenyan Business Feed by Kenyan Business Feed
Barclays sounds the alarm on banking overregulation
Share on FacebookShare on Twitter

Table of Contents

Toggle
        • Companies
  • Barclays sounds the alarm on banking overregulation
Companies

Barclays sounds the alarm on banking overregulation

Wednesday, June 5, 2019 20:53


By PATRICK ALUSHULA

Jeremy Awori
Barclays Kenya managing director Jeremy Awori. FILE PHOTO | NMG

Barclays Bank of Kenya #ticker:BBK says it sees banking services possibly becoming more costly in the near future due to increased regulations in the sector.

The lender, with more than 100-years presence in Kenya, says the sector is likely to face more regulations in 2019, complicating operations in the sector even as regulators tighten rules to grow trust in the market.

“Trust is the most important asset for any bank. The Kenyan banking industry finds itself — although well intended — in a potential overregulation cycle,” Barclays said in its latest annual report.

“In 2019, we are likely to see more laws being implemented in banking, likely making operations more complex to manage and banking services more costly.”

Banks have witnessed heightened scrutiny, backed by new regulations under the reign of Central Bank of Kenya (CBK) Governor Patrick Njoroge. This was especially after three banks collapsed in quick succession over governance lapses.

While the lender cites a sound banking sector with stronger balance sheets as a key positive, it warns of increased negative impact on lenders’ revenues, costs and capital positions.

“Additional compliance requirements and charges would ultimately affect customers. Interest rate cap and stricter credit scoring could result in certain customers and segments being excluded from formal financial services,” it cautions.

According to Barclays, some regulations introduced in the recent past have seemed to overlap on intent and requirements.

For instance, it explains, the more than five pieces of new regulations that came last year seemed to complicate the banking environment.

Consumer protection, data privacy and cybersecurity were the broad regulatory themes last year.

Barclays however acknowledges that tighter regulation is crucial to ensure the sector maintains the highest standards so as to predict and prevent financial crimes.

“We welcome the need to make the industry safe and sound. Thus, we support the regulators and will continue to collaborate as the regulatory regime evolves,” BBK says.

The recently released 2019 East Africa CEO outlook report cited the changing regulatory environment as third biggest concern for corner office holders after operational risks and cyber security threats.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

Chaos, order right mix for companies

May 15, 2019

Government funded road projects progressing well in Nairobi

May 18, 2019

Subscribe.

Trending.

Co-op Bank Branches in Nairobi and Their Contacts

March 3, 2025
Co-operative Bank Subsidiaries

Co-operative Bank Subsidiaries Shine with Strong 2024 Profits

April 2, 2025
Kenya Wildlife Service shares an update on the successful repatriation of 17 mountain bongos, now thriving in their newly established sanctuary in Mount Kenya, marking a major milestone in conservation efforts.

Repatriated Mountain Bongos Show Signs of Thriving in Their New Habitat

April 1, 2025
Tourism CS Rebecca Miano discusses the economic impact and global appeal of the 2025 Safari Rally

Tourism CS Rebecca Miano Reveals Economic Impact of the 2025 Safari Rally

April 1, 2025

Tourism Ministry Leads Push to Improve Passenger Experience at JKIA with New Service Charter

April 1, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1803 shares
    Share 749 Tweet 439

Recent News

Co-operative Bank Subsidiaries

Co-operative Bank Subsidiaries Shine with Strong 2024 Profits

April 2, 2025
Kenya Wildlife Service shares an update on the successful repatriation of 17 mountain bongos, now thriving in their newly established sanctuary in Mount Kenya, marking a major milestone in conservation efforts.

Repatriated Mountain Bongos Show Signs of Thriving in Their New Habitat

April 1, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF