CCP Intermediate Level

Credit Governance and Compliance glossary

Every term this guide defines, A to Z, each with the chapter that teaches it. Open it when a word in a question is unfamiliar, and test yourself on it in the last week: cover the definition and say it in one sentence.

7 terms from the free first chapter

C

Capital Markets Authority (CMA)

Regulates listed lenders' securities and governance disclosure (see the chapter on corporate governance in lending institutions).

Taught in Overview of the regulation of financial institutions

Central Bank of Kenya (CBK)

Regulates commercial banks, and, since dedicated regulations were introduced, digital credit providers.

Taught in Overview of the regulation of financial institutions

M

Microfinance regulators under the Microfinance Act

Oversee microfinance banks and credit-only microfinance institutions (see the chapter on microfinance lending regulations).

Taught in Overview of the regulation of financial institutions

P

Principles-based regulation

Broad principles (e.g. 'lend responsibly') lenders must apply judgement to satisfy, more flexible but less predictable in enforcement.

Taught in Overview of the regulation of financial institutions

R

Risk-based supervision

Regulatory attention and intensity scaled to each institution's actual risk profile, rather than uniform treatment of every regulated entity.

Taught in Overview of the regulation of financial institutions

Rules-based regulation

Detailed, specific rules lenders must follow, e.g. CBK's numeric prudential ratios, predictable but can be circumvented by conduct technically compliant with the letter but not the spirit of the rule.

Taught in Overview of the regulation of financial institutions

S

SACCO Societies Regulatory Authority (SASRA)

Regulates deposit-taking SACCOs (DTS), covered in the chapter on cooperative and sacco lending regulations.

Taught in Overview of the regulation of financial institutions

The full glossary adds every term from the other 11 chapters, A to Z, each with the chapter that teaches it.