A commercial bank is a financial institution that accepts deposits from the public and gives loans for the purposes of consumption and investment to make a profit .
11-707: Family Bank Limited ( FBL ), commonly known as Family Bank , is a commercial bank in Kenya , the largest economy in the East African Community . It is licensed by the Central Bank of Kenya , the central bank and national banking regulator. Family Bank is a medium-sized commercial bank in Kenya . As of 31 December 2017, the bank's total assets were valued at KSh69.12 billion (approximately US$ 696 million), with shareholders' equity of KSh11.75 billion (approximately US$ 118.3 million). The bank
22-498: A cash sum of US$ 14.3 million. Two years later, that stake was sold to two Kenyan corporations, for an estimated price of US$ 21.3 million (KES:1.84 billion). The company shares are traded over-the-counter, with plans to list on the Nairobi Stock Exchange (NSE) in the future. As of June 2015, the bank's shareholding was as follows: In February 2021, the bank opened its 92nd networked brick-and-mortar branch, in
33-539: A common misconception known as the "bank analogy". Unlike commercial banks, central banks are not primarily focused on generating profits and cannot become insolvent in the same way as commercial banks in a fiat currency system. The name bank derives from the Italian word banco 'desk/bench', used during the Italian Renaissance era by Florentine bankers, who used to carry out their transactions on
44-680: A desk covered by a green tablecloth. However, traces of banking activity can be found even in ancient times. In the United States, the term commercial bank was often used to distinguish it from an investment bank due to differences in bank regulation. After the Great Depression , through the Glass–Steagall Act , the U.S. Congress required that commercial banks only engage in banking activities, whereas investment banks were limited to capital market activities. This separation
55-526: A number of services to its clients; these can be split into core banking services such as deposits, loans, and other services which are related to payment systems and other financial services. Along with core products and services, commercial banks perform several secondary functions. The secondary functions of commercial banks can be divided into agency functions and utility functions. Agency functions include: Utility functions include: Capital market Too Many Requests If you report this error to
66-575: Is the same building where founder Mr. TK Muya had rented a small space that served as both a branch and his office. The shares of stock of FBL are privately owned by institutional and individual investors. In October 2010, a consortium consisting of private equity firm AfricInvest, based in Tunisia , FMO of the Netherlands and Norway 's Norfund , acquired a 25% stake in Family Bank for
77-721: The Nairobi neighborhood called Eastleigh . At that time Family Bank maintained branches in 34 out of Kenya's 47 counties . The chairman of the board of directors is Wilfred D. Kiboro, one of the non-executive directors. Nancy Njau is the chief executive officer, effective 2 January 2024. Commercial bank It can also refer to a bank or a division of a larger bank that deals with corporations or large or middle-sized businesses, to differentiate from retail banks and investment banks . Commercial banks include private sector banks and public sector banks. However, central banks function differently from commercial banks, despite
88-519: The borrower. Instead, they open a deposit account from which the borrower can withdraw. In other words, while sanctioning a loan, they automatically create deposits. Regulations In most countries, commercial banks are heavily regulated and this is typically done by a country's central bank . They will impose a number of conditions on the banks that they regulate such as keeping bank reserves and to maintain minimum capital requirements . They also require some capital Commercial banks generally provide
99-457: The re-branded Family Bank Limited , to comply with current Kenyan banking regulations. Since converting to a commercial bank, FBL has been pursuing an expansion of its branch network. In 2010, the bank diversified into the insurance industry through a subsidiary Dhamana Insurance Agency. In 2013, the bank acquired a building in central Nairobi that serves as its headquarters and is currently undergoing renovation to carry its corporate image. This
110-417: Was founded in 1984 as Family Finance Building Society Limited . Titus Muya, the former non-executive chairman of Family Bank served as the founding chairman and chief executive officer for the first twenty-three years of the organisation. In 2007, it became a commercial bank, following the issuance of a banking license by the Central Bank of Kenya , the country's banking regulator. Titus Muya resigned as CEO of
121-471: Was mostly repealed in 1999 by the Gramm–Leach–Bliley Act . The general role of commercial banks is to provide financial services to the general public and business, ensuring economic and social stability and sustainable growth of the economy. In this respect, credit creation is the most significant function of commercial banks. While sanctioning a loan to a customer, they do not provide cash to
SECTION 10
#1732772429833#832167