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
Date
2020-12
Authors
Munge, Samuel Kiongera
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
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.
Description
A Thesis submitted in partial fulfillment of the requirements of the Degree of Master of Laws, at Strathmore University
Keywords
Banking Laws and Regulations., Prudential Guidelines