CBK Approves JP Morgan Chase Bank to Establish Representative Branch in Kenya
The Central Bank of Kenya (CBK) has authorized JP Morgan Chase Bank N.A. to establish a representative office in Kenya
This approval was granted in accordance with Section 43 of the Banking Act after JP Morgan Chase Bank N.A. met all the stipulated requirements set forth by the CBK
The representative office will operate as a marketing and liaison office for the bank's parent company and affiliates
Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research and reporting expertise, providing insights into Kenyan and global trends.
Nairobi - The Central Bank of Kenya (CBK) has authorised JP Morgan Chase Bank N.A. to establish a representative office in Kenya.
CBK Governor Kamau Thugge (l) and Jamie Dimon (r), chief executive officer of JPMorgan Chase & Co..Photo: @CBKKenya/Getty Images.
Source: UGC
JP Morgan Chase Bank is a leading American financial conglomerate that will be known as the JPMorgan Chase Bank N.A. Representative Office Kenya.
In a press release issued by the CBK, the approval was granted in accordance with Section 43 of the Banking Act, and JP Morgan Chase Bank N.A. successfully fulfilled all stipulated requirements.
What is the work of the representative office?
CBK explained that JP Morgan Chase Bank N.A., headquartered in the United States, operates in over 60 countries globally and offers a wide range of financial services.
The services include asset and wealth management, commercial banking, investment banking, and financial technology.
"Under the Banking Act, Representative Offices of foreign banks in Kenya serve as marketing and liaison offices for their parent banks and affiliates and are not permitted to undertake banking business. The JPMorgan Chase Bank N.A. Representative Office Kenya will operate in line with this requirement," read the statement by CBK.
The representative office will serve as a marketing and liaison office for the bank's parent company and affiliates.
By establishing its representative office in Kenya, the bank aims to explore new business opportunities within the country and the broader East African region.
The CBK noted that the presence of JPMorgan Chase Bank N.A. in Kenya will significantly diversify the country?s financial sector while helping to catalyse both trade and investments.
JP Morgan reports profits
In other news on TUKO.co.ke JPMorgan Chase and Citigroup reported increased second-quarter profits in July 2024 despite somewhat higher costs to account for bad loans in light of greater stress on lower-income customers in the US.
JPMorgan Chase also saw lower-income segments shift spending from discretionary to essential goods, which "for obvious reasons is understood to be a little bit of a sign of weakness," said Chief Financial Officer Jeremy Barnum, while noting that most of the bank's customers tend to have higher credit scores.
The lender, the biggest US bank by assets, pointed to a boost from higher investment banking fees and asset management fees, as well as a lift from greater net interest income (NII); NII is based on the interest JPMorgan earns on loans less the interest it pays out to depositors.
Source: TUKO.co.ke
