{"id":685278,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/685278/?format=json","text_counter":128,"type":"speech","speaker_name":"Hon. Mulu","speaker_title":"","speaker":{"id":1955,"legal_name":"Benson Makali Mulu","slug":"benson-makali-mulu"},"content":"Imperial Bank pointed out that these banks were placed under receivership because of the minimum core capital. Each of these banks had core capital of more than Kshs5 billion. Some of the banks that went under in the past had Kshs80 billion while others had Kshs20 billion. They had more money than they required. The problem was governance. Both the directors and the top management conspire to embezzle funds left, right and centre, without caring about the shareholders’ and depositors. If we sort out governance issues, we should have no problem with the minimum core capital. We can still retain it at Kshs500 million. We can increase it to a billion, so that we encourage people to invest in the banking sector. For your information, out of the 12 most profitable companies in Kenya as per last year’s financial reports, several of them were banks. This is where money is. Why do you want to lock our people from this lucrative business? We need to make sure that this amount remains either Kshs500 million or increases to Kshs1 billion."}