Regulatory Alerts2021-09-01
Added · Updated
Commencement of the Risk-Based Premium Assessment Model
The Kenya Deposit Insurance Corporation has officially implemented a Risk-Based Premium Assessment Model to replace the previous flat-rate system and incentivize banks to mitigate excessive risk-taking. This model utilizes bank-provided information to categorize institutions by risk profile, ensuring equitable premium assessments in compliance with the KDIC Act of 2012. Member banks have been sensitized to the new methodology, which the Corporation will regularly review and adjust to maintain effectiveness amid changing market conditions.
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