Tier 1 banks are without a doubt the safest. These fall into the category of ‘Too Big to Fail,’ as Americans like to call it. “Certain corporations, particularly financial institutions, are so large and interconnected that their failure would be disastrous to the larger economic system,” according to Wikipedia. “They must therefore be supported by government when they face potential failure.”
Following the financial crisis in 2008, the US government was compelled to bail out its top tier banks. JP Morgan Chase (not to be confused with the Kenyan JP Morgan Chase), Wells Fargo, and Citigroup each earned KSh 2.5 trillion. Other banks were given smaller sums.
Six banks make up Kenya’s top tier, and they collectively control 49.9% of the market.
Tier 2 consists of 16 additional banks that control 41.7 percent of the market.
Tier 3 is comprised of 21 small banks that account for 8.4 percent of the market.
Tier 1
1. KCB
2. Equity Bank
3. Cooperative Bank
4. Standard Chartered
5. Barclays Bank
6. CBA
The Biggest in Tier 2
– CFC Stanbic
– NIC
– Diamond Trust Bank
– I&M
– Chase Bank
– Bank of Africa
– Family Bank
– Ecobank
– Housing Finance
Someone said that if your bank has no queues, it may be time to re-consider that partnership.
