ADVOKS GLOBAL · KENYA
Banking Act
18. Ratio between capital and assets
Edition: 2024-12-27 · In force
18. Ratio between capital and assets
(1)The Central Bank may prescribe the minimum ratios which shall be maintained by institutions and banking groups as between their core capital and total capital on one hand and their risk-weighted assets (including their total loans and advances) and risk-weighted off balance sheet items on the other and for that purpose, may also determine the method of classifying and evaluating assets:Provided that the Central Bank may prescribe higher minimum ratios based on its assessment of an institution’s or banking group’s risk profile.(2)A non-operating holding company or any other vehicle of ownership which controls a group shall, in relation to its business, maintain adequate capital and adequate forms of liquidity to demonstrate that it is a source of strength for the institution and shall comply with any regulations issued by the Central Bank on minimum ratios or capital requirements in any other form.