NAIROBI, Kenya, Sept 22 – The Central Bank of Kenya (CBK) Deputy Governor Sheila M’Mbijjewe Wednesday said that resilience is key to navigating economic adversities occasioned by the COVID-19 pandemic.
Speaking during the 10th Annual Banking Research Conference, M’Mbijjewe urged banks and other financial institutions to maximize the opportunities and risks brought by the pandemic in order to develop resilience that will sustain them.
She said that despite the brutal hit to the economy, banks have been key in aiding and strengthening the economic condition of the country.
“Banks have been critical in bringing Kenya to its current state of stability, economic arguments should be answered through clear economic policies, “she added.
Kenya Bankers Association Governing Council Chairman, John Gachora, on his part, noted that banks should invest in research in order to understand the financial environment.
‘’These dynamics are seen to have a bearing at both the policy and operational fronts, and at the broader economic environment under which banks, just like other businesses, operate. It is in recognition of these dynamics that the banking industry has endeavoured to ground its understanding of the current and emerging developments through research,’’ he said.
He further lauded the banking sector for introducing major reforms and regulatory initiatives in order to enhance financial stability.
“These reforms are what have enabled Kenya to now have one of the most developed banking systems in Africa,” Gachora stated.
Kenya Banker’s Association (KBA) Chief Executive Officer Habil Olaka exuded confidence that the banking industry’s resilience would help promote sustainable economic recovery in 2021.
‘’How the industry navigates the potential trade-offs of ensuring a stable system and supporting economic recovery is a tight balancing act, that would be informed partly by the focus of some of the papers lined up for presentation in this conference,’’ Olaka stated.
Institutions present during the conference were the KBA Centre for Research on Financial Markets and Policy, Financial Sector Deepening Africa (FSDA), NCBA Bank, Strathmore University and Embu University.