The Assessment of Systemic Risk in the Kenyan Banking Sector

Table 2

Results of stress test in 2009; CDs number: number of contagious defaults; IC: interconnectedness: the total strength, namely, sum of in-strength and out-strength; TA: total assets; IA: interbank assets (loans and advances to banks). Total assets are measured at market value, whereas interbank assets are measured at book value. We use the letters s1, s2, s3, s4, s5, s6, s7, and s8 to stand for Barclays Bank, Coop, Diamond Trust, Equity Bank, HFCK, KCB, NBK, and NIC, respectively. The unit of currency is Shs.

Number	Bank name	Collapsed banks	CDs number	IC	TA	IA
S1	Barclays Bank	S1, S6, S7, S8	3	0.0518	155,151,000	1061000
S2	Coop	S1, S2, S6, S7, S8	4	0.2198	110531373	4642338
S3	Diamond Trust	S1, S3, S6, S7, S8	4	0.2713	47146767	5638340
S4	Equity Bank	S1, S4, S6, S7, S8	4	0.3821	96512000	2022000
S5	HFCK	S1, S5, S6, S7, S8	4	0.1624	18280761	2106419
S6	KCB	S1, S2, S3, S6, S7, S8	5	0.6858	172384128	5936128
S7	NBK	S1, S6, S7, S8	3	0.0445	51404408	1154271
S8	NIC	S1, S6, S7, S8	3	0.1824	47558241	4936616