By Lora Benson
The Kenya Bankers Association (KBA) and the Chartered Institute for Securities & Investment (CISI) have signed a Memorandum of Understanding (MOU) to enhance professional standards in credit risk management within the Kenyan banking sector. This strategic partnership will promote the Fundamentals of Credit Risk Management (FCRM) exam among banking professionals, with KBA endorsing the qualification to its members.
The FCRM exam is designed to equip banking professionals with the essential skills and knowledge required to assess and manage credit risk effectively. By fostering a deeper understanding of risk assessment, mitigation strategies, and best practices, the certification aims to strengthen the banking sector’s ability to manage lending risks prudently.
Addressing the Non-Performing Loan (NPL) Challenge
Kenya’s banking sector has faced a persistent challenge with non-performing loans (NPLs), which impact financial stability and economic growth. By promoting the FCRM exam, the CISI and the KBA aim to build a workforce proficient in credit risk assessment, thereby reducing NPL levels in the market. This initiative aligns with the broader industry goal of enhancing responsible lending practices and ensuring a resilient financial ecosystem.
Target Audience and Market Impact
The FCRM exam is tailored for credit analysts, risk managers, loan officers, and banking professionals who play a critical role
in credit evaluation and decision-making. With the endorsement from KBA, banks and financial institutions will be encouraged to integrate the qualification into their staff training programs, enhancing industry-wide competence in credit risk management.
Kenya Bankers Association CEO, Mr Raimond Molenje said: “We are delighted to partner with CISI to bring this important qualification to our members. Strengthening credit risk management capabilities is essential to mitigating financial sector risks and fostering sustainable banking practices. We encourage our member banks to adopt the FCRM certification as a standard for credit risk professionals.”
Kevin Moore Chartered FCSI, CISI Executive Director Membership & Business Development said: “The MOU between CISI and KBA underscores our commitment to supporting Kenya’s banking sector with globally recognised qualifications. The FCRM exam will equip professionals with the knowledge and tools necessary to enhance credit assessment processes, ultimately leading to more informed lending decisions and a reduction in non-performing loans.”