turn, interacts in an unfavourable way with another risk arising from a prolonged period of low interest rates. a prolonged period of low interest rates could set the wrong incentives. it could encourage banks to postpone necessary balance sheet adjustments. and it might induce governments to postpone necessary structural reforms and the consolidation of public finances. in my view, this could be the biggest threat to the recovery process. the improved outlook together with low interest rates could lead to complacency and reform fatigue. we cannot let this happen. we cannot let it happen because there is still a lot to do to put the euro area back on a solid footing and to truly bring an end to this crisis. reform at the national level must continue and, looking to the future, reform at the european level is equally important. 5. how to bring an end to the crisis? at the european level, the most important project is the banking union. the banking union is most certainly the biggest step since the introduction of the euro. and it is the most logical step to take. a single currency requires integrated financial markets and this includes the supervision of banks. consequently, one of the pillars the banking union rests upon is a single supervisory mechanism – that is european bank supervision for the largest banks. centralising supervisory powers in such a way can foster a comprehensive and unbiased view upon banks. it also enables policy action that is not held hostage by national interests. thus, it will contribute to more effective supervision and better cross - border cooperation and coordination. however, the banking union does not rest on one pillar alone. a second pillar is necessary to keep everything in balance. this second pillar is the single resolution mechanism. european bank supervision requires european bank resolution – otherwise there would be an imbalance between liability and control. in a wider sense, resolution mechanisms are essential to solve the too - big - to - fail - problem. large banks must be able to fail without endangering the stability of the whole system. otherwise, the government would have to step in to prevent a systemic crisis. this would create an asymmetry : if everything goes well, the bank wins. if everything goes downhill, the taxpayers lose. this creates moral hazard for banks, endangers financial stability and threatens public finances. bis central bankers ’ speeches the single resolution mechanism will address this problem. it will allow authorities to restructure or resolve banks without putting taxpayers ’ money at risk. in the future, whenever a bank fails

njuguna ndung ’ u : combating structural poverty amongst producers in africa remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the launch and celebration of solidaridad ’ s achievement of iso 9001 – 2008 certification, nairobi, 20 march 2014. * * * the solidaridad eastern and central africa expertise centre ( secaec ), was officially established in september 2008 in nairobi, kenya with the vision to be a regional leader in combating structural poverty amongst producers in africa and promoting social and environmental sustainability. – this is what i term binding constraints in our economies. its mission is to facilitate the smallholder producers to produce commodities in an economically, environmentally and socially sustainable manner that ensures good market access, improved prices and high incomes for better quality of life. to achieve this, seceac is working in the eastern and central africa region, impacting over 400, 000 smallholder farmers in coffee, tea, livestock, horticulture and food security, cotton, gold and sugarcane. the 2008 world bank ’ s “ agriculture for development report ” recognized the enormous potential of agriculture in offering employment globally. seceac programs in kenya are also aligned to the achievement of vision 2030, which recognizes the agricultural sector as one of the key sectors within the economic pillars for the country ’ s economic growth. it envisages “ a food - secure and prosperous nation ”. regionally, the program targets to achieve six out of the eight millennium development goals targeting reduced poverty and hunger by half by the year 2015 ; promoting gender equality and empowering women through integrating gender issues in their projects, reducing child mortality, ensuring environmental sustainability and developing a global partnership for development. secaec programs on these value chains are currently valued at 16 million euros, targeting improvement of productivity and quality for better incomes, with the overall objective of improving the livelihood of the smallholder farmers in the region. in achieving its goals and mandate, indirectly secaec are contributing towards the economy of the region through foreign exchange, creation of employment and empowerment of women and youth through programs designed to address gender and youth disparity. within the region and internationally, secaec has established a network of experts and consultants in all the value chains, working with a wide range of collaborators including key government departments. in public private partnership projects ( ppp ), the organization values the role played by both public and private institutions. notable partnership in the region has been with