East Africa’s listed banks have reported either flat or reduced profit for the first three months ended March 31, setting the pace for a year of subdued performance as the Covid-19 pandemic stifles economic activity.
Regional central banks have implemented intervention measures to boost liquidity in the banking system and ensure that lenders extend the relief to borrowers whose cash flow positions have been affected by the Covid-19.
In Kigali, the National Bank of Rwanda lowered the Central Bank Rate (CBR) to 4.5 per cent from five per cent and lowered the reserve requirement ratio to four per cent from five per cent to ease liquidity in the banking system amid the Covid-19 disruption.
In Uganda, the Bank of Uganda (BoU) reduced the CBR to eight per cent from nine per cent to boost liquidity while in Kenyan the Central Bank reduced the Cash Reserve Ratio (CRR) to 4.25 per cent from 5.25 per cent, releasing Ksh35.2 billion ($352 million) to the banking sector.
THE CHALLENGE
Regional Central banks have implemented intervention measures to boost liquidity in the banking system and ensure lenders extend the relief to borrowers whose cash flow positions have been affected by the Covid-19 pandemic.
