kenyans as spelt out in the kenya banking sector charter of 2019. banks should not just provide banking services, but should ensure they meet the needs of customers while also being aligned to environmental, social and governance considerations. in the context of the actions to reverse the climate crisis, we aspire for a world where all financial services are green. three milestones have been reached in this journey. first, in 2015, the kenya bankers association ( kba ) launched the sustainability finance initiative ( sfi ). the sfi aims at raising awareness on environmental, social and governance risks and financing within the banking sector. kba has set - up a comprehensive online training designed to enable banks to create long - term value for the economy, society and the environment. currently, all 38 banks are participating and over 30, 000 bankers have so far been enrolled. second, in january 2020, the first corporate green bond in east and central africa of ksh. 4. 3 billion was issued by the acorn group and listed at the nairobi securities exchange ( nse ). the bond was also admitted on the international securities market ( ism ) segment at the london stock exchange ( lse ). the proceeds were used to build environmentally - friendly housing for university students. third, in november 2020, kenya ’ s largest bank, kcb bank, was accredited by the united nations green climate fund ( gcf ) as the first financial intermediary for the implementation of green financing in east africa. gcf is the world ’ s largest climate fund, mandated to support developing countries raise and realize their nationally determined contributions ( ndc ) ambitions towards low - emissions, climateresilient pathways. while acknowledging these milestones, a lot more needs to be done to green kenya ’ s financial system, and issuance of the guidance will quicken the journey for the banking sector. over the next one - and - a - half years, cbk will walk with banks to build capacity and integrate climate - related risk management in their day - to - day operations. in turn, this will attract global funds that are looking for opportunities to finance initiatives that build climate resilience, and thus positioning kenya as a premier green finance hub. for kenya and other countries, the time is now to build a truly sustainable financial system that works for and with the people. ultimately all financing should be green. the stakes are high. there is no planet b. dr. patrick njoroge is governor of

8 per cent basle requirement for capital. so, although nonperforming and other impaired loans amounted to 15 per cent of gdp in sweden ( a figure that is rather similar to recent estimates for korea ), the original cost to the government of rescuing the banking system amounted to only some 4 per cent of gdp ; since then, moreover, most of this has in fact been recovered. • sweden applied restrictive rules to central bank involvement in the banks. only liquidity support was provided, inter alia in the form of foreign currency deposits to stem the outflow from the banks and to reduce the risk of a credit crunch. this did not involve the riksbank in any risks because the state guarantee for banks ’ repayments also applied to us as a lender. 3. triggers now, let me turn to the actual crisis. it is well known that the event ( or events ) triggering a crisis is often different from the crisis ’ underlying causes. in the absence of a triggering factor, countries with substantial underlying problems from time to time have also been able to avoid an acute crisis. the event triggering a crisis is sometimes rather dramatic, such as the assassination of a politician - as in the mexican case - or a sudden loss of confidence, e. g. due to the presentation of a disappointingly weak fiscal budget. opinions may differ about what were the most important “ triggers ” of the acute crises we are discussing today. again, i see both differences and similarities between sweden and the asian countries. in our case, a policy shift to the low - inflation regime in the rest of europe, combined with structural changes and a more hostile international environment ( with higher interest rates and lower growth, as i mentioned before ), made the existing situation unsustainable and triggered the crisis. in the early 1990s the government refrained from accommodating the high costs and inflationary pressures that had been building up in the 1980s. under similar circumstances earlier in the 1970s and 1980s we had devalued several times. now there was broad agreement that we should stick to the fixed exchange rate in order to bring inflation down ; in this respect, the policy was indeed successful : inflation fell from 8 - 10 per cent to 2 - 3 per cent in less than two years. one effect of this, however, was that real interest rates shot up. structural reforms were also implemented, particularly in the tax system but also in housing and other areas. one aim of these reforms was to create more