Banking Sector Stability, Efficiency, and Outreach in Kenya
Although Kenya's financial system is by far the largest and most developed in East Africa and its stability has improved significantly over the past years, many challenges remain. This paper assesses the stability, efficiency, and outreach of...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101006154729 http://hdl.handle.net/10986/3924 |
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okr-10986-3924 |
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| recordtype |
oai_dc |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS POINTS ACCESS TO BANKING ACCESS TO BANKING SERVICES ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS ACCESS TO SERVICES ACCOUNTING ASSET QUALITY ASSETS RATIO AUTONOMY BAD DEBTS BALANCE SHEETS BANK ACCESS BANK BRANCHES BANK COMPETITION BANK FAILURE BANK FAILURES BANK INDONESIA BANK PRIVATIZATION BANK SERVICES BANKING CRISES BANKING CRISIS BANKING INDUSTRY BANKING REFORM BANKING SECTOR BANKING SECTOR ASSETS BANKING SECTOR EFFICIENCY BANKING SECTOR STABILITY BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BOND BOND MARKETS BORROWING CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL FLOWS CAPITAL REQUIREMENTS CAPITAL RETURN CAPITALIZATION CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS COMPETITIVE MARKET CONSOLIDATION CONTRACT ENFORCEMENT COOPERATIVES CORPORATE GOVERNANCE COST OF CREDIT COUNTRY COMPARISONS CREDIT REGISTRY CREDIT RISK CREDITORS DEBT DEBT ISSUANCE DEBT RECOVERY DEFAULTS DELIVERY OF CREDIT DEPOSIT DEPOSIT INSURANCE DEPOSITOR DEPOSITORS DEPOSITS DEVELOPMENT BANK DISPUTE RESOLUTION DIVERSIFICATION DOMESTIC BANKS EARNINGS ECONOMIC GROWTH ECONOMIES OF SCALE EDUCATIONAL ATTAINMENT EMERGING ECONOMIES EMERGING MARKETS EMPLOYMENT EQUITY RATIOS EXCHANGE RATES EXPENDITURES EXTERNAL AUDITORS FINANCES FINANCIAL CONGLOMERATES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL EXCLUSION FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL SAFETY FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICE FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL DEFICIT FOREIGN BANKS FORMAL BANK FORMAL BANKING FORMAL FINANCIAL SERVICES FRINGE BANKS GOVERNMENT BANKS GOVERNMENT DEBT GOVERNMENT REFORM GOVERNMENT SECURITIES HIGH INTEREST RATE HOLDINGS HOUSEHOLDS INFLATION INFORMAL FINANCE INFORMAL FINANCIAL INSTITUTIONS INSTITUTIONAL REFORMS INSURANCE INSURANCE COMPANIES INSURANCE CORPORATION INSURANCE SERVICE INSURANCE SERVICES INTEREST EXPENSE INTEREST INCOME INTEREST RATE INTEREST RATE SPREADS INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL BANK INTERNATIONAL CAPITAL INVESTMENT BANKS LIQUID ASSETS LIQUIDATION LIQUIDITY LIQUIDITY POSITIONS LIQUIDITY RATIOS LOAN LOAN LOSS PROVISIONS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN REQUESTS LONG-TERM ASSETS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MANDATES MARKET DISCIPLINE MARKET ECONOMY MARKET SEGMENTATION MARKET STRUCTURE MATURITY MATURITY TRANSFORMATION MFIS MICROFINANCE MICROFINANCE INSTITUTIONS MIGRATION MINIMUM CAPITAL REQUIREMENTS MONEY TRANSFER NET INTEREST MARGIN NON-PERFORMING LOAN NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATING COSTS OPERATING INCOME OUTREACH OVERHEAD COSTS OWNERSHIP STRUCTURE PAYMENTS SERVICES PENSIONS PRIVATE BANKING PRIVATE BANKS PRIVATE CREDIT PRIVATE SECTOR BANKS PRIVATIZATION PRIVATIZATIONS PROFIT MARGIN PROFIT MARGINS PROFITABILITY PRUDENTIAL REQUIREMENTS PUBLIC ENTERPRISES REGULATORY AUTHORITY REGULATORY FRAMEWORK REGULATORY POLICIES REMITTANCE REMITTANCES RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURN ON ASSETS RETURN ON EQUITY RISK MANAGEMENT RISK TAKING RISK WEIGHTED ASSETS RURAL ACCESS RURAL BRANCHES SAFETY NET SAVINGS SAVINGS DEPOSITS SAVINGS SERVICES SELF-REGULATION SHARE OF ASSETS SHORT-TERM DEPOSITS SMALL BANKS STATISTICAL ANALYSIS STATUTORY REQUIREMENTS STOCKS SUPERVISION OF BANKS SUPERVISORY FRAMEWORK SUPERVISORY POWERS TAX TAX RATE TIER 1 CAPITAL TREASURY BILLS URBAN AREAS WEALTH CREATION |
| spellingShingle |
ACCESS POINTS ACCESS TO BANKING ACCESS TO BANKING SERVICES ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS ACCESS TO SERVICES ACCOUNTING ASSET QUALITY ASSETS RATIO AUTONOMY BAD DEBTS BALANCE SHEETS BANK ACCESS BANK BRANCHES BANK COMPETITION BANK FAILURE BANK FAILURES BANK INDONESIA BANK PRIVATIZATION BANK SERVICES BANKING CRISES BANKING CRISIS BANKING INDUSTRY BANKING REFORM BANKING SECTOR BANKING SECTOR ASSETS BANKING SECTOR EFFICIENCY BANKING SECTOR STABILITY BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BOND BOND MARKETS BORROWING CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL FLOWS CAPITAL REQUIREMENTS CAPITAL RETURN CAPITALIZATION CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS COMPETITIVE MARKET CONSOLIDATION CONTRACT ENFORCEMENT COOPERATIVES CORPORATE GOVERNANCE COST OF CREDIT COUNTRY COMPARISONS CREDIT REGISTRY CREDIT RISK CREDITORS DEBT DEBT ISSUANCE DEBT RECOVERY DEFAULTS DELIVERY OF CREDIT DEPOSIT DEPOSIT INSURANCE DEPOSITOR DEPOSITORS DEPOSITS DEVELOPMENT BANK DISPUTE RESOLUTION DIVERSIFICATION DOMESTIC BANKS EARNINGS ECONOMIC GROWTH ECONOMIES OF SCALE EDUCATIONAL ATTAINMENT EMERGING ECONOMIES EMERGING MARKETS EMPLOYMENT EQUITY RATIOS EXCHANGE RATES EXPENDITURES EXTERNAL AUDITORS FINANCES FINANCIAL CONGLOMERATES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL EXCLUSION FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL SAFETY FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICE FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL DEFICIT FOREIGN BANKS FORMAL BANK FORMAL BANKING FORMAL FINANCIAL SERVICES FRINGE BANKS GOVERNMENT BANKS GOVERNMENT DEBT GOVERNMENT REFORM GOVERNMENT SECURITIES HIGH INTEREST RATE HOLDINGS HOUSEHOLDS INFLATION INFORMAL FINANCE INFORMAL FINANCIAL INSTITUTIONS INSTITUTIONAL REFORMS INSURANCE INSURANCE COMPANIES INSURANCE CORPORATION INSURANCE SERVICE INSURANCE SERVICES INTEREST EXPENSE INTEREST INCOME INTEREST RATE INTEREST RATE SPREADS INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL BANK INTERNATIONAL CAPITAL INVESTMENT BANKS LIQUID ASSETS LIQUIDATION LIQUIDITY LIQUIDITY POSITIONS LIQUIDITY RATIOS LOAN LOAN LOSS PROVISIONS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN REQUESTS LONG-TERM ASSETS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MANDATES MARKET DISCIPLINE MARKET ECONOMY MARKET SEGMENTATION MARKET STRUCTURE MATURITY MATURITY TRANSFORMATION MFIS MICROFINANCE MICROFINANCE INSTITUTIONS MIGRATION MINIMUM CAPITAL REQUIREMENTS MONEY TRANSFER NET INTEREST MARGIN NON-PERFORMING LOAN NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATING COSTS OPERATING INCOME OUTREACH OVERHEAD COSTS OWNERSHIP STRUCTURE PAYMENTS SERVICES PENSIONS PRIVATE BANKING PRIVATE BANKS PRIVATE CREDIT PRIVATE SECTOR BANKS PRIVATIZATION PRIVATIZATIONS PROFIT MARGIN PROFIT MARGINS PROFITABILITY PRUDENTIAL REQUIREMENTS PUBLIC ENTERPRISES REGULATORY AUTHORITY REGULATORY FRAMEWORK REGULATORY POLICIES REMITTANCE REMITTANCES RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURN ON ASSETS RETURN ON EQUITY RISK MANAGEMENT RISK TAKING RISK WEIGHTED ASSETS RURAL ACCESS RURAL BRANCHES SAFETY NET SAVINGS SAVINGS DEPOSITS SAVINGS SERVICES SELF-REGULATION SHARE OF ASSETS SHORT-TERM DEPOSITS SMALL BANKS STATISTICAL ANALYSIS STATUTORY REQUIREMENTS STOCKS SUPERVISION OF BANKS SUPERVISORY FRAMEWORK SUPERVISORY POWERS TAX TAX RATE TIER 1 CAPITAL TREASURY BILLS URBAN AREAS WEALTH CREATION Beck, Thorsten Cull, Robert Fuchs, Michael Getenga, Jared Gatere, Peter Randa, John Trandafir, Mircea Banking Sector Stability, Efficiency, and Outreach in Kenya |
| geographic_facet |
Africa Sub-Saharan Africa East Africa Kenya |
| relation |
Policy Research working paper ; no. WPS 5442 |
| description |
Although Kenya's financial system
is by far the largest and most developed in East Africa and
its stability has improved significantly over the past
years, many challenges remain. This paper assesses the
stability, efficiency, and outreach of Kenya's banking
system, using aggregate, bank-level, and survey data.
Banks' asset quality and liquidity positions have
improved, making the system more resistant to shocks, and
interest rate spreads have declined, in part due to
reduction in the overhead costs of foreign banks. Outreach
remains limited, but has improved in recent years, driven by
mobile payments services in the domestic remittance market.
Fostering a level regulatory playing field for all
deposit-taking institutions is a key remaining challenge.
Specifically, an effective but not overly burdensome
framework for regulation and supervision of microfinance
institutions and cooperatives is a priority. Maintaining an
openness to new, and non-bank, providers of financial
services, which has enabled the success of mobile payments,
could also further outreach. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Beck, Thorsten Cull, Robert Fuchs, Michael Getenga, Jared Gatere, Peter Randa, John Trandafir, Mircea |
| author_facet |
Beck, Thorsten Cull, Robert Fuchs, Michael Getenga, Jared Gatere, Peter Randa, John Trandafir, Mircea |
| author_sort |
Beck, Thorsten |
| title |
Banking Sector Stability, Efficiency, and Outreach in Kenya |
| title_short |
Banking Sector Stability, Efficiency, and Outreach in Kenya |
| title_full |
Banking Sector Stability, Efficiency, and Outreach in Kenya |
| title_fullStr |
Banking Sector Stability, Efficiency, and Outreach in Kenya |
| title_full_unstemmed |
Banking Sector Stability, Efficiency, and Outreach in Kenya |
| title_sort |
banking sector stability, efficiency, and outreach in kenya |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101006154729 http://hdl.handle.net/10986/3924 |
| _version_ |
1764389044973731840 |
| spelling |
okr-10986-39242021-04-23T14:02:13Z Banking Sector Stability, Efficiency, and Outreach in Kenya Beck, Thorsten Cull, Robert Fuchs, Michael Getenga, Jared Gatere, Peter Randa, John Trandafir, Mircea ACCESS POINTS ACCESS TO BANKING ACCESS TO BANKING SERVICES ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS ACCESS TO SERVICES ACCOUNTING ASSET QUALITY ASSETS RATIO AUTONOMY BAD DEBTS BALANCE SHEETS BANK ACCESS BANK BRANCHES BANK COMPETITION BANK FAILURE BANK FAILURES BANK INDONESIA BANK PRIVATIZATION BANK SERVICES BANKING CRISES BANKING CRISIS BANKING INDUSTRY BANKING REFORM BANKING SECTOR BANKING SECTOR ASSETS BANKING SECTOR EFFICIENCY BANKING SECTOR STABILITY BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BOND BOND MARKETS BORROWING CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL FLOWS CAPITAL REQUIREMENTS CAPITAL RETURN CAPITALIZATION CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS COMPETITIVE MARKET CONSOLIDATION CONTRACT ENFORCEMENT COOPERATIVES CORPORATE GOVERNANCE COST OF CREDIT COUNTRY COMPARISONS CREDIT REGISTRY CREDIT RISK CREDITORS DEBT DEBT ISSUANCE DEBT RECOVERY DEFAULTS DELIVERY OF CREDIT DEPOSIT DEPOSIT INSURANCE DEPOSITOR DEPOSITORS DEPOSITS DEVELOPMENT BANK DISPUTE RESOLUTION DIVERSIFICATION DOMESTIC BANKS EARNINGS ECONOMIC GROWTH ECONOMIES OF SCALE EDUCATIONAL ATTAINMENT EMERGING ECONOMIES EMERGING MARKETS EMPLOYMENT EQUITY RATIOS EXCHANGE RATES EXPENDITURES EXTERNAL AUDITORS FINANCES FINANCIAL CONGLOMERATES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL EXCLUSION FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL SAFETY FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICE FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL DEFICIT FOREIGN BANKS FORMAL BANK FORMAL BANKING FORMAL FINANCIAL SERVICES FRINGE BANKS GOVERNMENT BANKS GOVERNMENT DEBT GOVERNMENT REFORM GOVERNMENT SECURITIES HIGH INTEREST RATE HOLDINGS HOUSEHOLDS INFLATION INFORMAL FINANCE INFORMAL FINANCIAL INSTITUTIONS INSTITUTIONAL REFORMS INSURANCE INSURANCE COMPANIES INSURANCE CORPORATION INSURANCE SERVICE INSURANCE SERVICES INTEREST EXPENSE INTEREST INCOME INTEREST RATE INTEREST RATE SPREADS INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL BANK INTERNATIONAL CAPITAL INVESTMENT BANKS LIQUID ASSETS LIQUIDATION LIQUIDITY LIQUIDITY POSITIONS LIQUIDITY RATIOS LOAN LOAN LOSS PROVISIONS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN REQUESTS LONG-TERM ASSETS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MANDATES MARKET DISCIPLINE MARKET ECONOMY MARKET SEGMENTATION MARKET STRUCTURE MATURITY MATURITY TRANSFORMATION MFIS MICROFINANCE MICROFINANCE INSTITUTIONS MIGRATION MINIMUM CAPITAL REQUIREMENTS MONEY TRANSFER NET INTEREST MARGIN NON-PERFORMING LOAN NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATING COSTS OPERATING INCOME OUTREACH OVERHEAD COSTS OWNERSHIP STRUCTURE PAYMENTS SERVICES PENSIONS PRIVATE BANKING PRIVATE BANKS PRIVATE CREDIT PRIVATE SECTOR BANKS PRIVATIZATION PRIVATIZATIONS PROFIT MARGIN PROFIT MARGINS PROFITABILITY PRUDENTIAL REQUIREMENTS PUBLIC ENTERPRISES REGULATORY AUTHORITY REGULATORY FRAMEWORK REGULATORY POLICIES REMITTANCE REMITTANCES RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURN ON ASSETS RETURN ON EQUITY RISK MANAGEMENT RISK TAKING RISK WEIGHTED ASSETS RURAL ACCESS RURAL BRANCHES SAFETY NET SAVINGS SAVINGS DEPOSITS SAVINGS SERVICES SELF-REGULATION SHARE OF ASSETS SHORT-TERM DEPOSITS SMALL BANKS STATISTICAL ANALYSIS STATUTORY REQUIREMENTS STOCKS SUPERVISION OF BANKS SUPERVISORY FRAMEWORK SUPERVISORY POWERS TAX TAX RATE TIER 1 CAPITAL TREASURY BILLS URBAN AREAS WEALTH CREATION Although Kenya's financial system is by far the largest and most developed in East Africa and its stability has improved significantly over the past years, many challenges remain. This paper assesses the stability, efficiency, and outreach of Kenya's banking system, using aggregate, bank-level, and survey data. Banks' asset quality and liquidity positions have improved, making the system more resistant to shocks, and interest rate spreads have declined, in part due to reduction in the overhead costs of foreign banks. Outreach remains limited, but has improved in recent years, driven by mobile payments services in the domestic remittance market. Fostering a level regulatory playing field for all deposit-taking institutions is a key remaining challenge. Specifically, an effective but not overly burdensome framework for regulation and supervision of microfinance institutions and cooperatives is a priority. Maintaining an openness to new, and non-bank, providers of financial services, which has enabled the success of mobile payments, could also further outreach. 2012-03-19T18:42:15Z 2012-03-19T18:42:15Z 2010-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101006154729 http://hdl.handle.net/10986/3924 English Policy Research working paper ; no. WPS 5442 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa East Africa Kenya |