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{
    "id": 102966,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/102966/?format=api",
    "text_counter": 109,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "The recent global financial crisis has called for enhanced supervision by financial sector regulators. To stem such crises, it is imperative that regulators have an array of measures at their disposal to forestall threats to the stability of institutions. To this end, I propose to amend the Banking Act to prompt corrective action, as well as to avail more teeth to the Central Bank of Kenya (CBK), to enhance banking sector stability. Last year, I amended the Banking Act to introduce agency banking, the object of which was to increase the outreach of the banking sector to the vast un- banked Kenyan populace. In order to deepen the use of agency banking, I propose to amend the Micro-Finance Act to facilitate the use of third party agents by deposit- taking micro-finance institutions. The CBK is restricted from sharing information obtained from surveillance of foreign exchange bureaus and other authorized agents, particularly where the information relates to fraud, tax evasion, criminal activity or matters of public interest. To this end, I propose to amend the CBK Act to allow the CBK to share or disclose information obtained from surveillance of authorized dealers with the aforementioned agencies. Mr. Speaker, Sir, the introduction of Islamic banking in this country has posed some challenges to CBK, since Sharia compliant transactions prohibit the payment of interest which is considered unfair. There is, therefore, need to amend the law to accommodate Islamic banking products by introducing the concept of return as opposed to interest. In this regard, I propose to amend the CBK Act to facilitate Islamic transactions in the management of liquidity in the banking sector."
}