Banking Law and Regulations

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What is banking law?

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Banking law refers to the legal framework that regulates the establishment, operation, and supervision of banks and financial institutions.

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What does the banking industry include?

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The banking industry includes systems of financial institutions called banks that help people store and use their money.

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What is the role of banks in the economy?

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Banks provide resources for individuals, families, and organizations to use for transactions and investments, including organizing and distributing loans.

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What acts anchor Kenya's banking law framework?

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Kenya's banking law framework is anchored in the Central Bank of Kenya Act and the Banking Act.

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What is the mandate of the Central Bank of Kenya (CBK)?

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The CBK's mandate includes formulating and implementing monetary policy, supervising banks, fostering liquidity, solvency, and stability of the banking system, and issuing currency.

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What does the Banking Act (Cap 488) provide?

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The Banking Act provides the legal framework for licensing, regulation, and supervision of banks and other financial institutions.

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What are some key provisions of the Banking Act?

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Key provisions include requirements for licensing, restrictions on insider lending, obligations to maintain minimum capital, and powers of CBK to conduct inspections.

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What are Prudential Guidelines?

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Prudential Guidelines are legally binding guidelines issued by the CBK covering aspects of bank operations and risk management.

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What does the National Payment System Act govern?

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The National Payment System Act governs electronic payment systems and services in Kenya.

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What is KYC?

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KYC stands for Know Your Customer, a mandatory process of identifying and verifying a client's identity when opening an account.