Annual REPORT
2015-Annual-Report-Financial-Statements
2015-Annual-Report-Financial-Statements
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ANNUAL <strong>REPORT</strong> AND FINANCIAL STATEMENTS<br />
FOR THE YEAR ENDED 31 DECEMBER 2015<br />
NOTES TO THE FINANCIAL STATEMENTS (Continued)<br />
2015 2014<br />
Sh’000<br />
Sh’000<br />
13 CASH AND BALANCES WITH CENTRAL BANK OF KENYA – Group & Bank<br />
Cash in hand 2,779,634 2,297,220<br />
Balances with Central Bank of Kenya - cash ratio reserve 3,260,168 2,494,392<br />
- other balances 127,290 740,999<br />
__________ _________<br />
6,167,092 5,532,611<br />
========= ========<br />
The cash ratio reserve is based on the value of customer deposits as adjusted by the Central Bank of Kenya requirements. As at 31 December<br />
2015 the cash ratio reserve requirement was 5.20% (2014 – 5.29%) of all customer deposits held by the group. These funds are<br />
not available to finance the group’s day to day operations.<br />
14 BALANCES DUE FROM BANKING<br />
INSTITUTIONS – Group & Bank<br />
a) Balances due from banking institutions maturing within 90 days:<br />
2015 2014<br />
Sh’000<br />
Sh’000<br />
Overnight lending and placement with other banks 4,687,834 7,240,426<br />
Balances due from local banking institutions 525 527<br />
Balances due from foreign banking institutions 203,999 137,098<br />
_________<br />
_________<br />
4,892,358 7,378,051<br />
======== ========<br />
b) Balances due to banking institutions maturing within 90 days:<br />
Balances with local banks 131,643 209,291<br />
======= ========<br />
Deposits with/from local banks as at 31 December represent overnight lending. The effective interest rate on deposits due from local<br />
banking institutions at 31 December 2015 was 8.97 %( 2014 – 8.56%). The effective interest rate on deposits due to local banking institutions<br />
at 31 December 2015 was 7.59% (2014 – 6.68%).<br />
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