@stocksguru7 kenyan banks are way above the threshold set by the basel....

They are too well capitalised and comply with all international standards....

Guru267-On what basis have you come to that conclusion that they are better capitalised than international standards. do you anything about Basel 2?

guru267-so does that mean every bank in Kenya has enough capital to cover its Pillar 1 risks(credit;market;operational) its Pillar 2 risks and is doing its Pillar 3 disclosures?

Lets talk about things you know about madam

@Wa_ithaka don't insult my intelligence....

As soon as this thing was passed CBK issued a statement saying that all banks complied with these regulations....

So i'd like you to show me exactly which ones don't comply and How

Though I'm not a banker, my simple understanding shows that the CBK statement may only have been political. @guru267, this reports from CBK may not fully agree with you key findings on pg5/6


@Wa_ithaka had a point, put across tactlessly...
South Africa was the first African country to fully implement Basel II accord and this was spearheaded by their Reserve Bank. In fact, Kenyan banks with SA counterparts will testify to the nightmare!

In assessing credit risk they come up with these risk-weightings that impair capital, which need the regulator's approval; risk-weights are applied to all borrowers based on loads of additional customer information.

Requirements of the second pillar have far reaching impact on supervision, operations, market, liquidity, counterparty aspects of banking operations.

Regulator comes in on the third pillar, necessitating an overhaul of the framework of daily/monthly/annual reporting, and holding banks legally responsible for compliance to Basel II.