Kenya to step up supervision: Ndung’u

The Central Bank of Kenya's existing early warning system will be scaled up to incorporate both macro- and microprudential indicators of financial stability, said Njuguna Ndung'u, the governor of the central bank.

Ndung'u said the central bank will also step up supervisory cooperation and coordination with domestic and foreign financial sector regulators. He said this was particularly relevant as Kenyan banks extended their reach locally and regionally and also as products developed encouraged other regulators to come into the picture.

He also said that the central bank would encourage the adoption of forward-looking techniques by banks in their risk-management framework. He said this measure would be accompanied by "market education" to ensure that the results were not misinterpreted.

He made the comments on 23 July.

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