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Banks tighten lending to stem resurgence in bad loans

A banking hall at one of the local banks. [File, Standard]

The prevailing economic conditions have made banks more risk-averse when extending credit to customers, as indicated by contrasting figures in the latest report published by the regulator.

The report by the Central Bank of Kenya (CBK) suggests that banks are tilting towards better asset quality, lower-ticket lending, and higher-quality borrowers to reduce the risk of non-performing loans.

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