An evaluation of the preparedness of banks in Kenya for Basel III implementation

Abstract

This qualitative study sought to establish the preparedness of banks to implement Basel III standards; the latest instalment of the Basel accords. A study of literature determined that implementation of Basel IL the predecessor to Basel III, has been problematic for banks in developing nations. To determine if this is the case for banks in Kenya, this study used personal interviews with experts in risk and compliance to determine the challenges of Basel II implementation, if these challenges affect preparedness for Basel III and the perceptions of experts about preparedness of banks in Kenya for Basel III. This study found out that while the views on preparedness from experts are varied, the challenges faced in implementing Basel II will affect adoption of Basel III standards.