Skip navigation

Publications & Research :: Policy Research Working Paper

Structural Issues in the Kenyan Financial System: Improving Competition and Access

ACCOUNTABILITY ACCOUNTING ADVERSE CONSEQUENCES ADVERSE SELECTION AUTONOMY BANK PRIVATIZATION BANK SIZE BANK SUPERVISION BANKING CRISIS BANKING INDUSTRY BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKS CAPITAL ACCUMULATION CAPITAL INFLOWS CAPITAL MARKETS CENTRAL BANK COMMERCIAL BANKS COMPETITIVENESS CONSOLIDATION CONSUMER PROTECTION CONTAGION CONTRACT ENFORCEMENT COUNTRY COMPARISON COUNTRY COMPARISONS CPI CREDIT RATIONING CREDIT RISK CROWDING OUT DEBT DEPOSITORS DEPOSITS DEVELOPED COUNTRIES EARNING ASSETS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMERGING MARKETS EMPIRICAL EVIDENCE ENABLING ENVIRONMENT FINANCIAL CONTRACTS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY DEVELOPMENT FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL POLICIES FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL SYSTEMS FOREIGN BANKS FRAUD GDP GDP PER CAPITA GOVERNMENT POLICIES GROWTH INCOME INFLATION INSTITUTIONAL ENVIRONMENT INSTITUTIONAL REFORM INSURANCE INTEREST MARGIN INTEREST RATE INTEREST RATES INTERNATIONAL BANKS INTERNATIONAL TRADE LEGAL FRAMEWORK LEGAL PROVISIONS LEGISLATION LENDING RATES LIQUIDITY LOAN LOSS PROVISIONS LOOTING MANDATES MARKET DISCIPLINE MICROFINANCE MORAL HAZARD MORTGAGES NET INTEREST MARGIN OVERHEAD COSTS OWNERSHIP STRUCTURE PARTIAL PRIVATIZATION POLICY POLICY ENVIRONMENT POLICY MAKERS POLITICAL INTERFERENCE PORTFOLIOS POVERTY ALLEVIATION PRIVATE BANKS PRIVATIZATION PRODUCTIVITY PROFIT MARGIN PROFIT MARGINS PROFITABILITY PUBLIC POLICY RECAPITALIZATION RESERVE REQUIREMENTS RESOURCE ALLOCATION RETURN ON ASSETS SAVINGS SHAREHOLDERS SMALL BANKS SUPERVISORY FRAMEWORK TERMS OF TRADE TRANSPARENCY VALUE OF MONEY VOLATILITY VULNERABILITY FINANCIAL SYSTEM FINANCIAL SECTOR DEVELOPMENT ECONOMIC GROWTH POVERTY ALLEVIATION GOVERNANCE OWNERSHIP INTEREST RATES CAPITAL MARKETS SHAREHOLDERS INCOME GROWTH GROSS DOMESTIC PRODUCT PER CAPITA PRIVATIZATION
64
0

Attachments [ 0 ]

There are no files associated with this item.

More Details

World Bank, Washington, D.C.
Africa | Kenya
2013-06-25T19:17:21Z | 2013-06-25T19:17:21Z | 2004-07

Although by regional standards, Kenya's financial system is relatively well developed and diversified, major structural impediments prevent it from reaching its full potential. Crosscountry comparisons, however, show the importance of a well-developed financial sector for long-term economic growth and poverty alleviation. Experience from other developing economies has shown the detrimental effect of government ownership and the positive impact that foreign bank ownership can have on the development of a market-based financial system. Analyzing and decomposing the high interest rate spreads and margins in Kenya helps identify structural impediments that drive the high cost of and low access to financial services. The limited information sharing on debtors, deficiencies in the legal and judicial system, the limited number of strong and reputable banks and non-transparency and uncertainty in the banking market are major impediments to the development of Kenya's financial system, to reducing spreads and to widening access.

Comments

(Leave your comments here about this item.)

Item Analytics

Select desired time period