1.1.4 Commercial Banks in KenyaAccording to CBK (2013) Supervision Report as of December 2013 out of the 43 commercialbanks 29 of them are domestically owned that includes Equity bank Kenya commercial bankFamily bank Kenya national bank and Consolidated bank and 14 are foreign owned includingBarclays bank. In terms 9 of asset holding, foreign banks account for about 34% of thebanking assets as of 2013. The Kenyan financial system is dominated by commercial banksas financial intermediaries that act as conduits between the surplus economic units and thedeficit economic units (Beck, Demirguc-Kunt& Levine, 2009). According to Rose (2002), acommercial bank is simply a business corporation organized for the purpose of maximizingthe value of the shareholders’ wealth invested in the firm at an acceptable level of risk.Obtaining a positive net income is imperative for permanency and sustainability.Commercial banks are licensed and regulated pursuant to the provisions of the Banking Actand the Regulations and Prudential Guidelines issued there under. They are the dominantplayers in the Kenyan Banking system and closer attention is paid to them while conductingoff-site and on-site surveillance to ensure that they are in compliance with the laws andregulations. The banking industry is being earmarked as a key pillar to the achievement ofvision 2030 (a long-term strategy to achieve sustainable growth by year 2030) throughincreased savings, encouragement of Foreign Direct Investment (FDI), safeguarding theeconomy from external shocks as well as propelling Kenya to become a leading financialcentre in Eastern and Southern Africa.Government of Kenya statistics reported an alarming 45% annual average increase innumber of economic crimes in year 2011. Banks in Kenya lost a staggering Kshs 1.7bn in thethree months August to October 2010. Commercial banks lost Kshs 761Milion in the first sixmonths of 2010 through fraud, according to the Central Bank of Kenya report in year 2011.The Government of Kenya earmarked the banking sector as one of the key pillars to theachievement of vision 2030. Within the Medium-Term Plan (2008-2012) under vision 2030,some of the target areas include development of a safe and reliable payments system that willensure smooth transfer and settlement of funds between customers and banks as well asbetween banks. Towards this end, the use of mobile phone networks, internet, payment cards,operational resilience and security will be pursued in order to increase trust, integrity andconfidence in the ICT based payment systems 10 (Government of Kenya, 2008).