Regulatory Alerts2022-11-10
Banking Circular No. 2 of 2022 - Compliance with the Banking (CRB) Regulations, 2020
This circular is a reminder to commercial banks, mortgage finance companies, and microfinance banks in Kenya regarding compliance with the Banking (Credit Reference Bureau) Regulations of 2020. The Credit Information Sharing Mechanism (CIS), established in 2010, has significantly impacted the credit market. The 2020 regulations aimed to embed risk-based pricing of credit by requiring institutions to consider factors like a customer's credit score when assessing loan applications. Institutions are urged to review their credit data reported to CRBs and adopt quality control systems for maintaining data integrity. Non-compliance with the provisions outlined in the 2020 Regulations could result in enforcement action under the Banking Act, Microfinance Act, and the Banking (Credit Reference Bureau) Regulations of 2020.