Cap­i­tal mar­kets reg­u­la­tor, banks in fi­nan­cial in­no­va­tion deal

Business Daily (Kenya) - - MARKET PLACE - James Ngun­jiri Ngun­­tion­

The Cap­i­tal Mar­kets Au­thor­ity (CMA) and Kenya Bankers As­so­ci­a­tion (KBA) said they had formed a part­ner­ship to pro­mote fi­nan­cial sec­tor in­no­va­tion through re­search and pol­icy ini­tia­tives. The move al­lows the two or­gan­i­sa­tions to col­lab­o­rate in the ar­eas of re­search, data shar­ing, anal­y­sis, and stake­holder en­gage­ment. Paul Muthaura, the CMA chief ex­ec­u­tive, said the sign­ing of the Mem­o­ran­dum of Un­der­stand­ing (MOU) with the KBA is aligned to the CMA Strate­gic Plan, 2018-2023, un­der its ob­jec­tive on en­hanc­ing strate­gic in­flu­ence. “This en­cap­su­lates sev­eral key ini­tia­tives, in­clud-

ing the need to en­gage with stake­hold­ers to en­sure deep­en­ing of the mar­ket and to build strate­gic al­liances with do­mes­tic and in­ter­na­tional part­ners, said Mr Muthaura. KBA chief ex­ec­u­tive Ha­bil Olaka said in keep­ing with the MOU, the bank­ing in­dus­try and CMA will em­brace a col­lab­o­ra­tive ap­proach on re­search and pol­icy out­puts in a bid to en­sure stake­holder in­volve­ment prior to de­vel­op­ment of pol­icy and reg­u­la­tion frame­works. “For years KBA has been the pre­em­i­nent source of bank­ing in­dus­try re­search and the as­so­ci­a­tion has led dis­course on pol­icy mat­ters. Through this part­ner­ship we will be able to lever­age our ex­per­tise and re­sources to con­tribute to broader fi­nan­cial sec­tor growth, an­chored on the de­vel­op­ment of our cap­i­tal mar­kets,” said Mr Olaka. The col­lab­o­ra­tion is also ex­pected to ex­plore op­por­tu­ni­ties for stim­u­lat­ing ac­tiv­i­ties in the bank­ing in­dus­try and cap­i­tal mar­kets through fi­nan­cial tech­nol­ogy (fin­tech) in­no­va­tion as the two or­gan­i­sa­tions seek to deepen fi­nan­cial in­clu­sion and fur­ther sus­tain­able eco­nomic de­vel­op­ment. The two or­gan­i­sa­tions will also strive to steer ahead ini­tia­tives within the bond mar­ket in­clud­ing strength­en­ing net­ting and col­lat­er­alised trans­ac­tion frame­works, green fi­nanc­ing and op­er­a­tional­is­ing bond mar­ket in­fra­struc­ture and prod­ucts. The col­lab­o­ra­tion is fur­ther ex­pected to ad­dress the low up­take of cap­i­tal mar­kets prod­ucts and ser­vices.

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