Arbeitspapier

Segmentation and efficiency of the interbank market in Kenya

This paper studies segmentation and efficiency of the interbank market in Kenya. The study utilizes network framework and case studies of countries with developed interbank markets, namely the UK, EU and the US. Using daily data for the period June 2003 to September 5 2012, the study finds that Kenya's interbank market is incomplete and highly segmented by size: small, medium and large banks. Specifically, large banks tend to discriminate against small banks in terms of credit extended and the interest rate charged, which is usually higher than those charged on their peers. The segmented nature of the market has limited its ability to facilitate banks' liquidity management strategy. The case studies show that the efficiency of the interbank market in Kenya can be enhanced through a number of developments such as adding lending products with maturities of more than one day so us to have a term structure; increasing the number of currencies traded; developing a benchmark interbank interest rate; and increasing linkages with other money market segments and monetary policy.

Sprache
Englisch

Erschienen in
Series: KBA Centre for Research on Financial Markets and Policy Working Paper Series ; No. 1

Klassifikation
Wirtschaft
Financial Markets and the Macroeconomy
Market Design
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Thema
Segmentation
interbank
efficiency
Kenya

Ereignis
Geistige Schöpfung
(wer)
Sichei, Moses Muse
Tiriongo, Samuel
Shimba, Chris
Ereignis
Veröffentlichung
(wer)
Kenya Bankers Association (KBA)
(wo)
Nairobi
(wann)
2012

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Sichei, Moses Muse
  • Tiriongo, Samuel
  • Shimba, Chris
  • Kenya Bankers Association (KBA)

Entstanden

  • 2012

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