Sh695b of bank funds at risk as global benchmark rate ends

Banks have also been reviewing and upgrading their systems to support a smooth transition to ARR. [iStockphoto]

Banks’ funds totalling Sh695 billion are at risk following the end of an international benchmark interest rate, the Central Bank of Kenya (CBK) has said in a new report.

In the 2021 Banking Supervision Report, the regulator noted that 27 local banks were offering various products of different tenors priced on the London Interbank Offered Rate (Libor), part of which was discontinued in December last year.