:-Much needed reform in the trading environment with security of investors' funds, trasding that is behind times, largely uneducated investor community, low confiendence. Confusion and opposition about capaital requirements when everwhere else, people seem to know what time it is...
:-Banking behind times in some ways (basic banking accounts and lending rates are uncompetitive); the unbanking population is reducing very slowly. Confusion about capital requirements when the world and his mother recognise the importance of strongly capitalised
:-Insurance sector that survives in part due to very good business savvy rather than strong and well regulated environment. Insurance penetration levels are very low as a result (2.6% compared to 14.6% in SA and 3.7% in India.
:-2007, new capital targets for Banks and Insurers are set before Bunge. They get shot down. 2008 similar targets for brokers and IBs are announced.
:-Isn't time we had an independent body bringing together the various financial sub-sectors and able to give streamlined common sense coherent regulation for the sector as a whole?
- Chairman: to steer policy, public dissemination and generally be a strong voice for the sector in and out of Kenya. We could start with a current CEO of one of the large banks to give the correct take-off.
- Clear regulation framework and underpining policy that is easily understandable to the financial sector and key stakeholders (investors, business and GoK). This would spell out among others, capital adequacy and liquidity requirements over an economic cycle; reporting requirements; how the firms will be supervised; expactations around management structure and corporate governance; risk management and measurement tools.
- Clearly spelt out targets on consumer education rather than nice sounding words especially around charges; consumer rights and complaints procedures.
- Oversight from the Parliament Committee for Finance