Consultative Paper on Review of the Risk-Based Credit Pricing Model
Central Bank of Kenya
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Abstract: CBK reviewed Kenya's mandated Reference Rate model for bank lending. The April 2025 paper evaluates the old RBA (Reference Based Pricing) system and proposes a new Kenya Banks Reference Rate (KBRR) benchmark. It outlines CBK?s recommended common reference rate (the objective is to convey CBK's recommended common reference rate for determining lending rates in Kenya's banking sector) to enhance transparency and stability in loan pricing. The study also examines market dynamics and potential reforms to the reference-rate system.
Theme/Sector:
Banking, Governance, Standards and Regulations
Year
2025