Kenya. Treasury to introduce risk policy for financial markets
•The micro-prudential banking policy is expected to mitigate risks likely to emerge during downturns in key sectors including banks, pension schemes, insurance and capital markets to safeguard capital and liquidity adequacy.
•According to National Treasury CS Ukur Yatani, the banks should assess the market to ensure that competition viewed as a sign of market dynamism, does not pose as a potential source of new risks that will have adverse consequences in the future.
The National Treasury is formulating a new policy that will help mitigate risks occasioned by a downturn in the financial markets.
The micro-prudential banking policy will cushion banking, insurance, pension schemes and capital markets by safeguarding capital and liquidity adequacy.
The policy is expected to be ready by the end of 2019/2020 financial year.
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