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{
    "id": 270460,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/270460/?format=api",
    "text_counter": 347,
    "type": "speech",
    "speaker_name": "Mr. Langat",
    "speaker_title": "",
    "speaker": null,
    "content": "Mr. Speaker, Sir, I support this Report. I want to agree that the banks also took advantage of the borrowing window. None other than the Governor himself said that, ordinarily, the Central Bank Rate (CBR) should always be higher than the inter-bank rate. But, unfortunately, in the month of November, 2011, at most times, the inter-bank rate was higher than the CBR rate by a huge margin of 8 per cent and 9 per cent. Given the responses that the CBK was issuing, it was possible for Bank “A” to borrow money from CBK at 22 per cent and lend it inter-bank at the rate of 30 per cent, and still make 8 per cent the same day using Government money. Mr. Speaker, Sir, it is also possible that banks could borrow from the CBK and buy Treasury Bills (TBs) with that money because at some point the TB rates were higher that the CBKR rates. Therefore, we expect the CBK to be a bank that is strategic and which is able to foretell the problems in the market, and not be a bank which is reactive, and which reacts very late."
}