ceiling

(redirected from Rate Caps)
Also found in: Dictionary, Thesaurus, Financial, Encyclopedia.

ceiling

Vox populi A maximum, upper limit. See Glass ceiling, Nondisclosure ceiling.
McGraw-Hill Concise Dictionary of Modern Medicine. © 2002 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
President Uhuru Kenyatta said, on Tuesday during his Chatham House address in London, that there is need to relook at the interest rate cap law.
Njomo introduced the interest rate cap bill to Parliament in 2015.
Early this month, the International Monetary fund had called on the government to review the interest rate cap or modify it saying that it contributed to a slowdown in economic growth.
1 per cent in the year to February, well below the Central Bank's target rate of 12-15 per cent.But Mr Mwatu warned that removing the rate controls without addressing the initial challenge of high cost of credit before the rate cap regime came into place would hurt borrowers.
IMF officials asked the government to abolish the 4 per cent interest rate cap on loans by banks implemented in 2016 on grounds it was benefiting the government and corporate firms while constraining small and medium enterprises (SMEs).
The fees and commission mitigated the impact of the restrictions placed on lending rates by the law that was enacted in September 2016.For Equity Bank, the impact was significant because the it registered an earnings per share growth of 14 per cent, the highest for a tier-one bank in a year when the rate caps were fully in force.
This is in the wake of the now functional IFRS 9 accounting standards topping of on the already existing interest rate cap regime which have seen the banking sector shun small businesses and households on account of their high risk profiles.
It also says the legal caps on borrowing have undermined the independence of the CBK."Following the MPC (Monetary Policy Committee) meeting in January 2018, it was noted that there was scope for accommodative monetary policy, however, interest rate caps had created an environment of possible perverse outcomes, thus constraining the MPC from using the CBR (Central Bank Rate) to signal its policy stance," it notes.
Kenya Commercial Bank Chief executive Joshua Oigara has proposed introduction of sector caps to replace the intrest rate caps following increasing difficulties to access credit by some sectors.
Small savers whose accounts were converted to transaction accounts by banks in the wake of the interest rate caps are unlikely to be affected.
On the other end, financial institutions reaction to interest rate caps largely hampered access to credit with various banks opting to take a hard risk-averse stance following the amendment of the Banking Act.