a) A financial institution is a financial intermediary (FI'S) that facilitates the transfer of funds between...

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a) A financial institution is a financial intermediary (FI'S) that facilitates the transfer of funds between suppliers and users of funds. Briefly explain the benefits that FI's provide to the suppliers of funds (6 marks) b) Identify at least three types of risks incurred by financial institutions and using illustrations, explain the extent to which the risks affect the operations of financial institutions in Kenya. (9 marks) c) In the recent past, Kenya has witnessed growth in both the number and the scope of financial institutions. Explain the causes of this trend. (10 marks) d) Identify four reasons that have led to the increase in loan sales in Kenya. How are Kenyan banks managing any risks arising from the growth in sales? (5 marks) a) A financial institution is a financial intermediary (FI'S) that facilitates the transfer of funds between suppliers and users of funds. Briefly explain the benefits that FI's provide to the suppliers of funds (6 marks) b) Identify at least three types of risks incurred by financial institutions and using illustrations, explain the extent to which the risks affect the operations of financial institutions in Kenya. (9 marks) c) In the recent past, Kenya has witnessed growth in both the number and the scope of financial institutions. Explain the causes of this trend. (10 marks) d) Identify four reasons that have led to the increase in loan sales in Kenya. How are Kenyan banks managing any risks arising from the growth in sales? (5 marks)

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a Financial institutions provide several benefits to the suppliers of funds which include 1 Intermediation Financial institutions act as intermediaries between the suppliers and users of funds They po... View the full answer