Basel II needs risk culture to work - Kenyan chief

Njuguna Ndung'u, the governor of the Central Bank of Kenya, said that east African commercial banks need to adopt sound risk management practices before the region's central banks can implement the Basel II accord.

The governor said: "Risk management does lie at the heart of Basel II and it is imperative that a 'risk management culture' be inculcated in banks as a precursor for implementation of the [Basel II] Accord."

The Central Bank of Kenya conducted a survey in 2004 that indicated Kenyan