State of cbk regulation and supervision on banking system and Clients awareness. Case study Narok town-kenya

Abstract

Financial sector has become a backbone in most of the economies such as Kenya. There have been frequent changes due to dynamic nature of the economy. The sector has witnessed a massive growth over the last decade. The result of this is frequent trends that has been striking through mass media. Particularly much has occurred in the banking sector concerning monitoring actions and the CBK. Stringent actions has been taken against certain banks and reported cases of malpractices has been penned down. The recent incidences of receivership and collapsing of banks in Kenya has led to huge financial loss to clients who have faced tough predicaments. While this occur the public or the clients has been caught off guard, some has incurred financial losses. This can be attributed to the low level of awareness and concepts in the banking system. This study sought to establish the state of regulation in banking system and awareness level among banking clients, and determine effective methods for the solution in awareness creation. The researcher reviewed relevant literature on regulation and awareness and then conducted a descriptive research design survey study to determine state of awareness, clients’ confidence with CBK monitoring activities and effectiveness of methods used in awareness campaign. The result of the study indicate that most people are less aware of such roles of the CBK, low level of confidence with CBK prevails and defective or less appropriate methods have been in use to create awareness. The study highlighted the turnaround actions for the existing gap which if carefully implemented the situation can change to better if not best.