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The Central Bank ask commercial banks to adopt a risk based credit model

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The Central Bank has told commercial banks to adopt a risk based credit pricing model whereby customers with better credit scores are advanced loans at lower interest rates if control on lending rates is to be lifted. However, asked if banks had the morality to do so without a regulatory mechanism to push them, Central Bank Governor Dr. Patrick Njoroge was economical with the details noting that CBK is sealing loopholes that were previously used by banks to exploit borrowers.

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