Regulatory Alerts2010-07-13
Banking Circular No 3 of 2010 - Roll Out of Credit Information Sharing Under the Banking Act
The Central Bank of Kenya has implemented the Banking (Credit Reference Bureau) Regulations, 2008, which established licensed credit reference bureaus (CRBs). These CRBs collect, collate, and share credit information with financial institutions. This credit information sharing mechanism aims to reduce risk premiums for borrowers, decrease search costs, encourage financial development in line with Vision 2030, and make more credit accessible to Kenyans. Starting July 12th, 2010, all licensed institutions were required to submit credit information on non-performing loans and other exchanged data monthly by the 10th day of each month. Failure to comply with these reporting requirements or provisions in the CRB Regulations could result in remedial action as specified under the Banking Act and the Banking (Credit Reference Bureau) Regulations, 2008.