Explain five ways in which the central bank regulates the operations of commercial banks in Kenya.

      

Explain five ways in which the central bank regulates the operations of commercial banks in Kenya.

  

Answers


Kavungya
?Bank rates-Raising or lowering rates to control lending.
-O.M.O –Open Market Operations e.g selling or buying Government securities.
-Cash/liquidity ratio requirements- requiring commercial banks to hold a certain proportion of total deposits in liquid form.
-Compulsory deposits requirements.
-Selective credit control
-Directives.
-Moral suasion- appealing to commercial banks.
Kavungya answered the question on September 26, 2019 at 08:44


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