The Central Bank of Kenya (CBK) has revealed plans to move away from the Risk-Based Credit Pricing Model (RBCPM), five years after it was introduced.
In a statement released on Wednesday, April 23, the CBK said it was time to assess the model to see whether it still met the needs of the evolving banking sector landscape, five years on.
The RBCPM was a joint initiative between the CBK and the banking sector, first introduced in 2019 as part of a broader strategy to address pertinent issues, including high lending rates and skewed loan pricing methods.
Over the past five years, the model has been integral in the banking sector, serving as a market-based framework to guide how banks price credit risk for their clients seeking loans. Central Bank of Kenya Governor Kamau during an event organized by Kenya Bankers Association on October 16, 2024.
