ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019
15. Assets committee
Edition: 2022-12-31 · In force
15. Assets committee
(1)Every mortgage refinance company shall establish a management committee to be known as the assets committee.(2)The assets and liabilities committee shall drive the strategy for the mortgage refinance company regarding the mix of assets and liabilities and its expectations of the future and the potential consequences of interest rate movements, liquidity constraints, and capital adequacy.(3)The responsibilities of the assets and liabilities committee shall include—(a)reviewing and assessing the integrity of the internal and risk control systems;(b)ensuring that the risk policies and strategies are effectively managed;(c)setting out the nature, role, responsibility and authority of the risk management function of the mortgage refinance company;(d)providing an independent and objective oversight and review of the information raised by management at different levels;(e)monitoring the limits on loans to capital ratios;(f)monitoring the limits on maximum and minimum maturities for all categories of assets and liabilities as set by the board;(g)monitoring limits on the sensitivity of the net interest margin on changes in market interest rates as set by the board;(h)monitoring the maximum percentage imbalance between rates and sensitive assets and liabilities as set by the board;(i)monitoring the limits on minimum spread acceptable between costs and yields of liabilities and assets as set by the board;(j)monitoring the limits on minimum liquidity provision to be maintained to sustain operations while longer term adjustments are set by the board;(k)monitoring the sources of funding;(l)monitoring the company's policies, procedures and holding portfolio to ensure that it achieves its goals; and(m)generally, to implement the funds management policy of the mortgage refinance company.(4)To perform its duties effectively, the assets and liabilities committee may access or obtain such professional advice as it may consider necessary to perform its functions.(5)The assets and liabilities committee shall have access to any information and records it needs to fulfil its duties and responsibilities.