Day: March 7, 2022

1. Mortgages An arrangement where the property being purchased provides the security for funding. Other assets may be used as security for funding of another asset. Features 1. Mortgagor and mortgagee agree on a long term financing arrangement 2. Financing Read More …

These are financial institutions that accept deposits of money from the general public, safeguard the deposits and make them available to their owners when need arises. Establishment Established under the Banking Act 1968. Functions of Commercial Banks 1. Accepting deposits Read More …

This is a bank which is entrusted with the responsibility of maintaining economic stability and financial soundness of a country. It is therefore entrusted with two objectives: 1. Responsibility of maintaining financial soundness of the economy. The bank has therefore Read More …

There are some sectors in the economy that may not secure adequate funds from commercial banks for various reasons. May take a long time to realize returns High risk associated with such sectors Unattractiveness/low returns Uncertainty or highly volatile returns Read More …

It’s a computerized ledger system that enables the holding or transfer of securities without the need for physical movement. The ownership of security or shares is through a book entry instead of physical exchange CDS is for security what a Read More …

Was established in 1990 by an Act of Parliament to assist in creation of a conducive environment for growth and development of capital markets in Kenya. Role of CMA 1. To remove bottlenecks and create awareness for investment in long Read More …