× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

CBK gives banks a year to effect rules

By Moses Omusolo | October 18th 2021
CBK Governor Patrick Njoroge. [File, Standard]

Commercial banks and mortgage finance institutions have until June 2023 to fully comply with environmental, social and governance considerations in their operations. This is after the Central Bank of Kenya (CBK) issued guidance on climate-related risk management.

In a statement, CBK said it expects financial institutions to integrate climate-related risk management into their business decisions and activities and develop an approach on disclosure of the financial risks from climate change.

"This guidance sets out some basic requirements that institutions should consider adopting to effectively entrench climate-related financial risks in their risk management frameworks."

CBK said climate-related risks continued to expose financial institutions to credit, market and liquidity risks, warning that high reliance on physical collateral can up credit risk from stranded collateral assets.

“Extreme weather events can also increase operational risk for banks due to disrupted business continuity from the negatively impacted bank’s infrastructure, systems, processes and staff.” 

Share this story
Insurers okay use of liquefied gas as alternative fuel for motorists
The lobby says the move follows a study which showed the LPG system does not increase the risk of damage to a vehicle in the event of an accident.
EPZ firms hire 7,400 new staff on rising exports
Data from the State Department of Trade shows EPZ firms are close to recovering the pre-pandemic workforce.