RegAlert2011-07-28
Added · Updated
Banking Circular No 7 of 2011: Central Bank Rate and Cash Reserve Ratio
The Monetary Policy Committee decided to maintain the Central Bank Rate (CBR) at 6.25%. Commercial banks are now required to maintain the Cash Reserve Ratio (CRR) based on a weekly average (Monday to Friday) of 4.75%, instead of a daily position. This allows banks to deviate from 4.75% on any given day, provided the overall average for the five days is 4.75%, with failure to observe this leading to penalization by the Central Bank at the current rate. These changes take effect immediately.
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BANKI KUU YA KENYA
CENTRAL BANK OF KENYA
Haile Selassie Avenue
P. O. Box 60000 - 00200 Nairobi, Kenya Telephone: 2860000, Fax: 340192
28 July 2011
BANKING CIRCULAR NO. 7 OF 2011
TO: ALL CHIEF EXECUTIVES OF COMMERCIAL BANKS
THE CENTRAL BANK RATE (CBR) AND CASH RESERVE RATIO (CRR)
The Monetary Policy Committee (MPC) at its meeting on 27th July 2011 decided to maintain the CBR at 6.25%.
On Cash Reserve Ratio, commercial banks will now be required to maintain the same based on a weekly average (Monday to Friday) of 4.75% instead of the daily position. This means that banks are free to deviate from the 4.75% on any given day provided that the overall average for the five (5) days will be 4.75%. Failure to observe the required average will lead to penalization by the Central Bank at the current rate.
The above changes take effect immediately.
JACKSON M. KITILI
DIRECTOR, BANKING SERVICES, NATIONAL PAYMENT SYSTEMS & RISK MANAGEMENT DEPARTMENT
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Source: Central Bank of Kenya — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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