External Risks Set to Challenge Kenyan Banks in 2020
GCR Ratings has published a Kenyan Banking Sector research piece for 2020.
Some of the highlights of the research are:
Currently, GCR expects the impact of the COVID-19 inspired global and domestic slowdown in Q2’20, alongside the locust swarm in Q1’20, to bring down economic growth to the region of +3% over the full year 2020, half that of 2019.
Non-performing loans and credit losses will increase over the year, although we expect the Central Bank of Kenya’s softening of classification and provisioning to stop an earnings shock and extend the reserving needs into 2021.
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