cooperation among regulatory authorities is essential. as regulators, we need to encourage and support transformation and innovation through better regulation instead of looking for avenues of more regulation. as per sir andrew crockett, better regulation is a regime that : can readily identify weaknesses and emerging vulnerabilities ; is capable of analyzing risks and adequately addressing pricing risks ; bis central bankers ’ speeches provides appropriate incentives ( penalties ) to induce prudent behavior in the market place ; but also to add in our case, the regulator is an agent of market development. better regulation encourages innovation and strong institutions to develop in the economy. cross border banking has its opportunities and challenges. as regulators, it is in our mutual interest to ensure the soundness and stability of our respective financial sectors. we should therefore play our rightful role in ensuring effective supervision of banking entities operating in our respective jurisdictions. we should also ensure that any systemic risk that may be posed by one bank operating in another jurisdiction is mitigated and promptly brought to the attention of the home regulator. the mou which we are signing today will thus enable us share a wide range of supervisory information on a more defined framework. ladies and gentlemen ; both mauritius and kenya are leading international hubs. mauritius is a renowned international financial centre for its offshore financial services. likewise, kenya, because of its leadership in mobile money transfer services, is now referred to as the silicon valley of africa. we can both learn from each other and share our respective experiences so as to increase the competitiveness of our markets as well as our financial institutions. the signing of this mou will therefore set forth a pragmatic approach for cooperation and the sharing of supervisory information. we accordingly look forward to building on the existing good relations between the central bank of kenya and the bank of mauritius and to a future of enhanced supervisory cooperation. i now invite governor bheenick to make some remarks before we proceed to sign the mou. thank you. bis central bankers ’ speeches

andrew bailey : governance and the role of boards speech by mr andrew bailey, deputy governor of prudential regulation and chief executive officer of the prudential regulation authority at the bank of england, at the westminster business forum, london, 3 november 2015. * * * it is a pleasure to be speaking at the westminster business forum again. i am going to use my time this morning to set out some thoughts on how at the pra we are thinking about the role of governance and boards in the prudential supervision of deposit takers, insurers and major investment firms. we work very closely with boards, more so than in past approaches to prudential regulation, and i find it a very important, constructive and informative engagement. there is a lot of focus at present on the senior managers and certification regime which will be implemented by next march, and on the proposal before parliament to change one element of the test, namely the presumption of responsibility. this morning i am going to focus on the substance that underpins the regime. also, i am not for the most part going to comment on the issue of diversity in board membership, but not because i think it is unimportant, far from it. the best place to start is the objectives given by parliament to the pra, namely the safety and soundness of firms that we supervise, the protection of insurance policyholders and our secondary objective in respect of competition, best described as requiring us to act in respect of the implications for competition of our own actions and inactions but only to the extent that we are not undermining our primary objectives. at the heart of what we do in the pra is risk assessment. understanding how firms take and manage risk, the controls they have and the quality of risk management, is at the heart of the job of a prudential supervisor. that ’ s what we do every day, and the standards of this work have been raised extensively since the crisis, which was very necessary. i never tire of saying that the pra is a judgement - based supervisor, by which i mean the application of judgement against a framework of rules and regulation. as mark carney said recently in the context of the european union, from which the largest part of our framework of rules and regulations comes : - “ ensuring the bank of england has the instruments necessary to achieve its financial stability objective will depend on the eu continuing to have regulations of the highest standards, which strike the appropriate balance