Enforcement of the Prudential Guideline no.13 (enforcement of banking laws and regulations-CBKPG13) by The Central Bank of Kenya (CBK) a case study of Chase Bank (Now SBM) for the period before and after its being placed under statutory management
Munge, Samuel Kiongera
In 2006, the Central Bank of Kenya (CBK) issued the Guideline on Enforcement of Banking Laws and Regulations. The Guideline was subsequently replaced in 2013 by the Prudential Guidelines 2013. Included in Prudential Guidelines 2013 was the Enforcement of Banking Laws and Regulations as Prudential Guideline No.13 (CBK/PG/13). It was expected that with the issuance of the Prudential Guidelines 2013, the quality of the enforcement of banking laws and regulations would improve so as to ensure that banks did not fail. However, within a period of less than three years, the 3 banks were placed under statutory management. This study examines the enforcement of the Prudential Guideline No.13 by the CBK through a case study of Chase Bank (CB) by making a comparison between the period before and after its being placed under statutory management. This is achieved through making use of qualitative and quantitative data obtained through interviews, with the aid of questionnaires, and from the CBK’s Bank Supervision Annual Reports from the year 2008 to 2018. The study seeks to establish whether the difference in the two periods, the period before and after CB being placed under statutory management, could be attributed to the enforcement mechanisms employed by the CBK in the enforcement of Prudential Guideline No.13 or whether there are other factors responsible for the difference in the two periods, other than the enforcement mechanisms employed by the CBK in the enforcement of the Prudential Guideline No.13. It thereafter makes recommendations based on its findings.
A Thesis submitted in partial fulfillment of the requirements of the Degree of Master of Laws, at Strathmore University
Banking Laws and Regulations., Prudential Guidelines