Mercy Gakii
1 July 2009
Nairobi — Kenya's banking sector is not deeply affected by the global credit crunch, which is expected to severely hit Africa according to Ms. Rose Ndetho, the director of banking supervision at Central Bank of Kenya.
"The banking sector in Kenya is still buoyant despite the credit crunch, thanks to an effective regulatory system," said Ms. Ndetho during the opening ceremony of the Bankers Association conference in Nairobi, Tuesday.
Themed 'Sustaining Trade Finance Through Challenging Times,' the annual conference discussed growing liquidity concerns, trade contraction, restraints on credit and the probability of increased regulatory oversight in the banking sector, as well as some of the significant developments in the region as well as to share best practices.
The conference that was being held in the country for the first time was organised by Bankers Association for Finance and Trade (BAFT), and brought together senior bankers from Africa and other parts of the world at a time when there are concerns on rising interest rates spurred by increased government borrowing.
President of BAFT, Donna K. Alexander pointed out to the need for the world to take notice of Africa's economic growth, being the continent that the world is focused on for new economic growth in the 21st century.
"Africa is increasingly seen as the new frontier for emerging market investment. Success for banks in this emerging market, means taking part in the region's accelerated economic growth, while being prudent about various business choices and compliance requirements."
He also noted that such forums offer an excellent opportunity to identify pitfalls and share best practices for overcoming them.
"Effective anti-money laundering compliance for instance can be a particular challenge for banks," he said.
At the conference, Lazarua Angbazo, the president of General Electric, addressed African governments' need to make maximum use of untapped capital held by private firms both local and international to spur infrastructure development.
"Partnerships between governments and the private sector have proved a sure way of sustainable infrastructure development especially at a time when developed countries are cutting down on debt financing of projects," said Mr. Angbazo.
According to Angbazo, public-private partnerships have been tipped as the only frontier for infrastructure development in Africa in the wake of shrinking debt-financing aid from developed countries.
The continent needs to streamline the legal framework that governs partnerships between government and private entities for infrastructure development.
BAFT is a financial trade association whose membership represents a broad range of internationally active financial institutions and companies that provide important services to the global financial community.
BAFT serves as a forum for analysis, discussion and action among international financial professionals on a wide range of topics affecting international trade and finance.
Be the first to Write a Comment!
Copyright © 2009 The Nation. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
