Kenya's Engagement with the Standard Setting Bodies and the Implications for Financial Inclusion
This paper discusses Kenya’s relationship with five prominent standard setting bodies (SSBs) and the implications of adherence to international standards for financial inclusion. It draws on a questionnaire completed by SSBs and coordinated by the Central Bank of Kenya.
The five SSBs in the report are Basel Committee on Banking Supervision (BCBS), Financial Action Task Force (FATF), Committee on Payment and Settlement Systems (CPSS), International Association of Deposit Insurers (IADI) and International Association of Insurance Supervisors (IAIS). Conclusions include:
- Need for development overshadows pure compliance in terms of SSB principles;
- Regional coordination now sets the priorities for international standards implementation;
- There is a need to better understand proportionality and risk-based approach, and capacity building in the developing country context;
- SSBs should provide clear guidance on conducting a national risk assessment;
- Degree of perceived SSB sanctions can influence or determine financial inclusion impact;
- Regional expansion presents supervisory challenges on which SSB guidance would be useful;
- Issue of deposit insurance coverage for mobile payment funds requires consideration within IADI.